Senvion, a leading global manufacturer of wind turbines, has met the company’s targets for 2017. The adjusted EBITDA margin amounted to 8.0 % as guided last year. In a challenging market environment, Senvion achieved robust revenues of EUR 1,890 million in 2017. Some project delays led to a minor shift in revenues to 2018. Senvion’s firm order intake of EUR 1,776 million was 36 % higher than in 2016. The company’s initial order intake guidance of EUR 2 billion was affected by the delay of two key order conversions, both of them have already converted into firm orders in Q1 2018.
Despite a general slowdown in current markets such as Germany, Senvion is making progress in setting the framework for successful and profitable growth in 2019. The company is focussing on growth in new markets while capturing opportunities in existing ones. In 2017, order intake strongly benefitted from Senvion’s growth strategy, driving significant gains over 2016. Senvion’s new markets including Australia, the Nordics, and the South Cone South America contributed EUR 715 million to the order intake. Further, Senvion succeeded in entering the expanding Indian market in February 2018 with a 101 MW firm order and followed up by another small order of 30 MW in March 2018. Senvion seeks to continue gaining market share in new markets on the basis of a promising project pipeline.
The order book of EUR 5.0 billion remained stable. Senvion’s service business continued to show a consistent double digit growth underlining the increasing relevance of its service offering. With an average service contract duration of 10 years+ and renewal rates above 75%, the service business is providing consistently growing cash flows.
Senvion CEO Jürgen Geissinger: “2017 has been a challenging, yet successful year for Senvion. Markets around the globe have been shifting towards auction systems with lower LCoE. This has led to expansion of auction volumes, also helping to stabilise prices as seen in last few auctions. In this market environment, Senvion continues to gain market share in its key geographies, embed modularity in our products even further and transform the supply chain, which will help us on our path to profitable growth in 2019.”
Senvion’s product philosophy is driven by a high level modularity – with a clear roadmap to improve LCoE significantly over medium term. The turbines are more competitive, optimized for the specific projects and offer a region specific product fit. For 2018, Senvion has new products in the pipeline that will further expand its product portfolio.
Manav Sharma, CFO of Senvion: “We have met our 2017 guidance regardless of the market challenges. We have been able to increase our order intake and realize our strategy. A reduction in annual OPEX costs of 19 % due to our efficiency program and annual 28 % lower interest costs are partial proof of the successful implementation of our strategy.”
Given the changes in the market environment, Senvion expects stable revenues and softening margins for 2018. Revenue is expected to amount to EUR 1.8-1.9 billion with adjusted EBITDA margins of 5.0-6.5 % for 2018. Based on the volume growth and market share gains in current and new markets, Senvion continues to expect a solid growth in 2019.
Senvion’s CY 17 report is available online and further details can be found in the earnings presentation. Furthermore, the reports are available on the website of the Luxembourg Stock Exchange (www.bourse.lu) as officially appointed mechanism for the central storage of regulated information.
