Siemens Gamesa Renewable Energy has announced that it has 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 margin1 at 8.2%. Net income amounted to €25 million.
The guidance for FY 2018 (revenues of €9-9.6 billion, EBIT margin1 of 7-8%, working capital of -3%-3% and CAPEX of €500 million) was successfully achieved, laying the groundwork for profitable growth.
Strong commercial activity
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.
Next phase of the L3AD2020 program
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 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.
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