Siemens Gamesa's Q2 profit jumps by 40%, order backlog hits EUR 23.6bn

Source: Siemens Gamesa Renewable Energy SA (www.siemensgamesa.com)

May 7 (Renewables Now) - Siemens Gamesa Renewable Energy SA (BME:SGRE) recorded a 40% year-on-year rise in net profit for its fiscal second quarter through March and said it achieved a record order backlog that fully covers the low end of its full-year revenue guidance range.

The wind turbine maker today posted a net profit of EUR 49 million (USD 54.9m) and earnings before interest and tax (EBIT) pre-PPA and integration and restructuring (I&R) costs of EUR 178 million, down 6% on the year. The EBIT margin pre-PPA, integration and restructuring costs went down to 7.5% from 8.4%.

Siemens Gamesa explained the decrease in profitability with lower prices in the order book. On the other hand, the rise in Q2 net profit is attributed to the lower impact of PPA and I&R costs.

Revenue in January-March 2019 climbed by 7% to EUR 2.39 billion thanks to solid performance in the Offshore and Service divisions.

The table below gives more information about the company’s financial performance in the second quarter and first half of fiscal 2018/19.

Figures in EUR million (unless otherwise noted) Q2 FY 2018/19 Q2 FY 2017/18 Y/Y change (%) H1 FY 2018/19 Y/Y change (%)
Group revenue 2,389 2,242 7% 4,651 6%
Wind turbine volume (in MW) 2,383 1,830 30% 4,513 18%
-- Onshore 1,707 1,397 22% 3,228 6%
-- Offshore 676 432 56% 1,285 65%
EBIT pre PPA, I&R costs 178 189 -6% 316 -2%
EBIT margin pre PPA, I&R costs (%) 7.5% 8.4% -1.0 p.p. 6.8% -0.6 p.p.
Net profit 49 35 40% 67 NA

The company experienced strong commercial activity, reaching a record order backlog of EUR 23.6 billion in the first half of fiscal 2018/19 that is up 7% compared to a year earlier. This fully covers the low end of the revenue guidance range of EUR 10 billion-11 billion for the full financial year. Order intake amounted to EUR 2.5 billion in the second quarter, while in the last 12 months it went up 8% to EUR 10.9 billion.

Siemens Gamesa noted that during the period it became the first wind turbine maker to attain an investment grade rating. Standard & Poor’s (S&P) assigned to it a BBB- long-term credit rating, with a positive outlook, while Moody’s gave the company a Baa3 outlook stable rating.

(EUR 1.0 = USD 1.121)

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