Gamesa More Than Doubles Profit In First Half Of 2015

Gamesa obtained €97 million in net profit in the first half of 2015, more than double the figure in the same period of 2014, as a result of expanding commercial activity (+30.8%) and improved profitability.

 

 

These results for the first half are aligned with the goals of profitable growth and a sound balance sheet set out by the Business Plan 2015-2017, which was unveiled in June.

Key figures H1 2015 (vs. H1 2014) 

In euro	2015 Guidance
Revenues: €1,651 million (+30.8%)	c. €3,400 million
Sales: 1,481 MWe (+24.9%)	c. 3,100 MWe
Underlying EBIT1: €136 million (vs. €83 million, +64.4%)
Underlying EBIT margin1: 8.2% (vs. 6.5%, +1.7 p.p.)	?8%
Underlying net profit pre-Adwen1: €86 million (vs. €42 million)
Net profit: 97 million (vs. €42 million, +130%)

Rising activity

Revenues increased by 30.8% year-on-year in the first half of 2015, to €1,651 million, driven by 36% growth in revenues in the wind turbine area, mainly as a result of higher activity, which amounted to 1,481 MWe, 24.9% more than in the first half of 2014.

This growth is attributable to the company’s sound diversified position: India and Latin America accounted for 45% of total MWe sales, while developed markets such as Europe and the US raised their contribution to 38%. China contributed 17%.

Strong commercial activity is reflected in the sharp growth in order intake in the first half: 1.835 MW (+41.4%), raising the order book to 2,847 MW at the end of June (+49%), covering 97% of the sales volume guidance for 2015 (c. 3,100 MWe) and increasing visibility within the plan horizon.

Operation and maintenance services revenues increased by 5.6% to €223 million in the first half.

Profitability and the balance sheet are improving steadily

In a situation of rising demand, Gamesa continues to enhance profitability and the balance sheet. It reported €136 million in underlying EBIT¹ in the first half of 2015 (+64%), equivalent to 8.2% of group revenues.

Net profit more than doubled in the first half of 2015, to €97 million, driven by sales growth, optimisation of variable costs, a positive currency effect and the recognition of Adwen. But for the contribution from the offshore subsidiary, net profit would have been €86 million. The company continues to strengthen its balance sheet and ended the half-year with zero financial debt: a net cash position of €39 million.