Siemens Gamesa revenue grows 15% €2.295 bn in Q1 fiscal 2021

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Siemens Gamesa said its revenue rose 15 percent in the first quarter of fiscal 2021 to €2.295 billion, driven by strong sales performance by both Offshore and Service.

Onshore sales of Siemens Gamesa were affected by delays in project execution as a result of restrictions on the movement of people and goods due to the COVID-19 pandemic.

Siemens Gamesa reported net income of €11 million in Q1 FY21.

“Our performance in the first quarter shows our commitment to prioritizing profitability (over volume), cash flow and sustainability, which are the levers of our strategy to put the company back on track to sustainable profitability,” said Andreas Nauen, chief executive officer of Siemens Gamesa.

Siemens Gamesa’s order book amounted to €30.104 billion (+7 percent) at the end of December 2020.

Order intake in the quarter stood at €2,281 million, reflecting volatile Offshore market dynamics, with no Offshore or related Service orders booked. Order intake is expected to resume in the coming quarters, Siemens Gamesa said.

Siemens Gamesa’s leading competitive positioning in the Offshore market is supported by a backlog of 6.1 GW and a pipeline of 9.3 GW. Moreover, the company is working actively with customers that are participating in Offshore auctions amounting to c.25 GW.

The Onshore business unit ended the quarter with €1,619m in new orders, representing a volume of 2,360 MW (–8 percent), which reflected the lower contribution from China, the weakness of the Indian market, and the company’s new commercial strategy to prioritize returns over volume.

The SG 5.X platform — a key component of the Onshore turnaround — contributed 1,100 MW in orders in the quarter; 82 percent of orders received in Q1 FY21 are for platforms with capacity of 4 MW or more.

The Service division booked €505 million in new orders in Q1 FY21, though Service order intake also reflects the volatility of the Offshore market, which is a significant source of Service work.

There will be a total of 3,000 GW of wind capacity installed by 2040, International Energy Agency (IEA) said.

Annual wind capacity additions will reach 145 GW in 2030 and 160 GW in 2040. In European Union, Offshore wind is expected to be the largest single source of power generation by 2050, accounting for over 25 percent of electricity supply, followed by Onshore wind and solar photovoltaic.

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