Spain's Gamesa posts 15% rise in Q1 profit, record EBIT

Spanish wind turbine maker Gamesa (BME:GAM) on Thursday reported a 15% year-on-year rise in first-quarter net profit to EUR 72 million (USD 82m) thanks to record activity volume and EBIT.

When excluding the results of Adwen, Gamesa’s 50/50 offshore wind joint venture with France’s Areva (EPA:AREVA), the improvement in the company’s bottom line is more impressive -- an 82% jump to EUR 80 million.

In January-March 2016, the company managed to register its highest-ever earnings before interest and tax (EBIT) result, reaching EUR 119 million for an 81% year-on-year surge. EBIT margin increased to 11.1% from 8%. Those figures exclude the impact of Adwen’s performance.

Revenues climbed by 29.7% to EUR 1.06 billion because of a 34% year-on-year growth in the wind turbine area driven by a 49% jump in sales to 1,061 MWe. Latin America accounted for 27% of the wind turbine sales, followed by India and the Europe, Middle East and Africa (EMEA) region with 26% each. The US contributed 16% and Asia-Pacific added 5%.

Order intake amounted to 1,031 MW, bringing the order book to 3,167 MW as at the end of March 2016. The company ended the quarter with a net cash position of EUR 194 million.

Gamesa pointed out that its Q1 results align with its commitment to achieve more than 3,800 MWe in volume and EBIT of above EUR 400 million for the full year.

(EUR 1.0 = USD 1.141)

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