Siemens Gamesa achieves 6% growth in revenue

Siemens Gamesa wind turbine

Siemens Gamesa Renewable Energy reported revenue of €2,262 million (+6 percent), driven by the Offshore business and by Service, in the first quarter (October-December) of FY 2019.

Wind turbine volume increased 7 percent to 2,129 MWe due to the strong contribution by the offshore segment, which sold 609 MWe (+76 percent).

Siemens Gamesa’s EBIT before PPA and integration and restructuring costs rose 4 percent to €138 million.

Siemens Gamesa reported EBIT growth of 13 percent to €40 million with EBIT margin of 6.1 percent. EBIT margin growth was flat was due to lower prices in the order book in 2018 and lower sales activity in onshore wind turbines, partly offset by synergies, productivity boosts and strong activity in the offshore and service businesses.

Siemens Gamesa reported net profit of €18 million against €35m loss in the same period of the previous fiscal year.

Siemens Gamesa has booked orders worth €11.5 billion in the last twelve months (+3 percent), driven by 28 percent increase in onshore orders worth €6.8 billion. Order intake in the first quarter was €2.5 billion, with onshore wind turbines order increasing 7 percent to €1.8 billion.

The order book of Siemens Gamesa rose 8 percent to €23 billion. Siemens Gamesa needs to complete orders worth €15.7 billion after FY 2019. This covers 92 percent of the revenue target for the current year.

Wind installations are expected to reach 72 GW per year by 2025, i.e. 5 percent compound growth. The offshore wind business is projected to attain 27 percent annual growth, from 2 GW of installations in 2018 to 12 GW in 2025.