Siemens Gamesa reports €18m net profit in the first quarter, with revenue up 6% to €2,262m

Revenue increased in the first three months of the year by 6% year-on-year, to €2,262m, driven by the Offshore business and by Service. Wind turbine volume increased by 7%, to 2,129 MWe, due to the strong contribution by the offshore segment, which sold 609 MWe (+76% YoY).

EBIT before PPA and integration and restructuring costs(1) amounted to €138m (+4% YoY) while reported EBIT was €40m (+13% YoY). The EBIT margin(1) was 6.1%, in line with the same period of last year. This 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.

Net profit amounted to €18m, contrasting with the €35m loss reported in the same period of the previous fiscal year. The net cash position stood at €165m.

Siemens Gamesa has logged orders worth €11.5bn in the last twelve months (+3% YoY), driven particularly by a 28% increase in onshore orders (€6.8b). Order intake in the first quarter amounted to €2.5b, with solid performance by onshore wind turbines (€1.8b, +7% YoY).

The order book stands at €23b (+8% YoY), of which €15.7b are orders to be filled after FY 2019. This lends greater visibility to future growth and covers 92% of the revenue target for the current year.

The prospects for the wind business remain sound. Installations worldwide are expected to reach 72 GW per year by 2025, i.e. 5% compound growth. The offshore wind business is projected to attain 27% annual growth, from 2 GW of installations in 2018 to 12 GW in 2025.

(1) EBIT before PPA and restructuring and integration costs excludes the impact of PPA on amortisation of intangible assets (€66m) and integration and restructuring costs (€32m) in the first quarter of FY 2019.

(2) Figures not comparable due to negative net income registered in the same period of the previous fiscal year.