Back to top
Reported by Siemens Gamesa Renewable Energy on 6 November 2018

Siemens Gamesa meets guidance for FY 2018 and reaches net income of €70 million on revenue of €9.1 billion

  • EBIT margin(1) at 7.6% with a sound balance sheet, returning to a net cash position of €615 million
  • Strong performance in Q4: revenue growth to €2,619 million (+12% YoY) and EBIT margin(1) at 8.2%
  • Peak backlog of €22.8 billion (+10% YoY), boosted by stable order intake of €11.8 billion (+9% YoY), securing future growth
  • Ready for the next phase of the company program L3AD2020, after achieving productivity improvements of €800 million, including €175 million in synergies
  • Guidance set for FY 2019: revenues of €10-11 billion, EBIT margin(1) of 7-8.5% and on track to meet FY 2020 targets based on financial framework launched at CMD

(Courtesy of Siemens Gamesa Renewable Energy, S.A.)

Siemens Gamesa Renewable Energy today released its results for FY 2018 (October-September) and the fourth quarter (July-September).

In the full year, ended September 30, 2018, revenue amounted to €9,122 million, while EBIT pre-PPA, restructuring and integration costs was €693 million with an EBIT margin at 7.6%, The EBIT margin is impacted by double-digit price decline in onshore wind turbine business partially compensated by synergies and productivity and the strong performance in Service.

Net income continued to recover, reaching €70 million in FY 2018, including the impact of integration and restructuring costs (€176 million). The company increased its net cash position to €615 million at September 30.

In the fourth quarter (Q4) the company’s financial performance was strong, with revenue growth to €2,619 million (+12% YoY) driven by the recovery of onshore volume and a high level of offshore project execution, with an EBIT margin(1) at 8.2%. Net income amounted to €25 million.

The guidance for FY 2018 (revenues of €9-9.6 billion, EBIT margin(1) of 7-8%, working capital of -3%-3% and CAPEX of €500 million) was successfully achieved, laying the groundwork for profitable growth.

In FY 2018 the company resumed strong commercial activity, with order intake of €11,872 million (+9% YoY), boosted mainly by a recovery in onshore order intake (+30%, to €6,682 million). Intense activity in offshore, with good progress in new markets, raised order intake to €2,795 million. During the period, the company signed its largest-ever offshore order – an agreement to supply 165 turbines to Hornsea II, the world’s largest offshore wind farm to date. Within Service, the company signed contracts worth €2,395 million during FY 2018.

Siemens Gamesa achieved a new record backlog of €22.8 billion (+10% YoY), providing enhanced visibility for 2019 and beyond and reaching revenue coverage of 80% for FY 2019.

Siemens Gamesa fully met its first-year objectives and is on track for the next phase, focused on leveraging economies of scale and laying the foundations for sustainable profitability, after achieving productivity improvements of €800 million, including synergies above €175 million.

The company has set the guidance for FY 2019: revenues of €10-11 billion and EBIT margin of 7-8.5%, on track to meet FY 2020 targets based on financial framework launched at CMD.

Siemens Gamesa also announced today that it has appointed Christoph Wollny as Chief Operating Officer (COO). This newly-created function will support to better address current and future market dynamics and further strengthen cost-cutting efforts. Wollny brings 25 years of international experience in different industries and functions and joins SGRE from his current position as Chief Procurement Officer at Siemens’ Power & Gas division.

(1) EBIT pre PPA and I&R costs excludes the impact of PPA on the amortization of intangibles (€306min FY 18, and €66mn in Q4 18) and integration and restructuring costs (€176m in FY 18, and €76m in Q4 18).

(2) FY 17 data are calculated using pro forma values for October-March FY 17 figures, based on legacy businesses’ reported information (Siemens Wind Power, Gamesa and 100% of Adwen) including SWP standalone, normalization and scope adjustments, and historical values of SGRE for April-September FY 17.

References

[1]

Siemens Gamesa Renewable Energy, S.A. Press release - Siemens Gamesa meets guidance for FY 2018 and reaches net income of €70 million on revenue of €9.1 billion. URL: https://www.siemensgamesa.com/en-int/newsroom/2018/11/presentation-of-fiscal-yea.... [Date Accessed: 06/11/2018].

Business & Finance

28 Jan | Corporate clean energy buying surged to new record in 2018

Corporations purchased 13.4 gigawatts of clean power through long-term contracts, more than doubling 2017’s total, helped by demand from new industries and previously untrodden markets

Business & Finance

24 Jan | Parkwind and ESB to develop two offshore wind farms at Oriel and Clogherhead

  • Potential generation capacity at Oriel Wind Farm to meet the needs of most of the population in Louth and Meath - 280,000 families
  • Highly complementary partnership between Parkwind, an experienced offshore operator, and ESB, which has significant experience in the delivery of major engineering projects in Ireland

Business & Finance

24 Jan | EBRD supports largest windfarm in Ukraine

  • EBRD arranging syndicated loan of €150 million to SyvashEnergoProm
  • Project to be co-financed by Green for Growth Fund, FMO and NEFCO
  • EBRD’s latest investment under USELF III achieves significant CO2 reductions

Business & Finance

18 Jan | TEPCO and Ørsted sign MoU to work jointly on offshore wind projects

Tokyo Electric Power Company Holdings, Inc. (TEPCO), the largest power company in Japan, and Ørsted A/S (Ørsted), the world’s leading offshore wind developer, announced today that they have signed a memorandum of understanding to work jointly on offshore wind projects.

16 Apr | Siemens Gamesa installs Arkona offshore wind power plant in Germany in record time

  • Construction works and installation of 60 SWT-6.0-154 offshore wind turbines with a total capacity of 385 MW sets new standards in German Baltic Sea
  • Construction works completed in record time of only five months; installation of turbines completed in around three months

16 Apr | Siemens Gamesa selected by Eolien Maritime France as preferred supplier to supply and service nearly 1 GW of offshore wind projects in France

  • Framework agreement signed with the objective of supplying up to 1,000 MW for two offshore wind projects off the French coast. The supply and service of the wind turbines is still subject to contract and final investment decision
  • Future service contract up to 15-year included in the framework agreement
  • Projects under development are the result of the first offshore wind call awarded to Eolien Maritime France consortium in 2012
  • SWT-7.0-154 DD offshore wind turbines expected to be supplied from Siemens Gamesa’s planned industrial manufacturing facility in the Port of Le Havre, France, currently under development

15 Apr | Siemens Gamesa is on track with the new SG 10.0-193 DD wind turbine for the world’s first zero subsidy offshore wind farm

  • The company is in final negotiations to supply the new SG 10.0-193 DD offshore wind turbines to Hollandse Kust Zuid (HKZ) 1&2 already awarded to Vattenfall
  • For the Hollandse Kust Zuid 3&4, Siemens Gamesa and Vattenfall have signed a contract, which is subject to the outcome of the Dutch auction and final investment decision
  • The SG 10.0-193 DD offshore wind turbine announced in January 2019 would feature in the world’s first subsidy-free offshore wind power plant
  • The new SG 10.0-193 DD turbines could be installed, strongly supporting the decrease in the levelized cost of energy (LCoE)

12 Apr | Denmark’s largest onshore wind project: Eurowind Energy chooses Siemens Gamesa as its supplier

  • Consists of 18 wind turbines for the Thorup-Sletten project in the northwest of Aggersund. Siemens Gamesa will also maintain the wind farm for 20 years through a long-term service program.
  • The installation will start in October this year. The 18 onshore turbines will have a total capacity of 77 MW and an electricity production corresponding to the annual consumption of approximately 65,000 households.