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Bigger manufacturers perform strongest in Q1

WORLDWIDE: Vestas, the world's leading turbine manufacturer, has recorded an increase in its first quarter financial results, despite a 15% fall in order intake.

Orders… Siemens’ deals in the quarter include nine SWT-3.2-113 for EDF Luminus projects in Belgium
Orders… Siemens’ deals in the quarter include nine SWT-3.2-113 for EDF Luminus projects in Belgium

Revenue at the Danish firm totalled €1.89 billion, up 29% from €1.46 billion in the same period of 2016. Gross profit grew 72% to €301 million, while Ebitda increased to €377 million.

Order intake, however, fell from €2 billion to €1.8 billion, corresponding to 2.05GW in turbine capacity. Most of the drop took place in Europe, which fell from over 1.88GW to 802MW. This reflected a 1GW order in Q1 2016 in Norway.

Order intake in the Asia-Pacific region increased to almost six times as high from 2016, totalling 326MW in this quarter.

"You are starting to see the first results of the China strategy. We have been making progress both with the new products we have there and now also the new organisation," said Morten Dyrholm, Vestas' group senior vice president of marketing, communications and public affairs.

Final solo quarters

Profits in Siemens' wind and renewables division grew 13% year-on-year in its second quarter, in the last results presentation prior to integration with Gamesa.

Profit for the division was recorded at €155 million, up from €137 million in 2016's corresponding period.

Revenues also increased 4% to EUR1.5 billion while orders totalled €3.1 billion, up from €2.1 billion last year. In the quarter, German developer EnBW confirmed its order for 71 Siemens 7MW turbines for the 497MW Hohe See offshore project.

Across the first half of Siemens' financial year, revenue in the wind division was up 9% for €2.9 billion against €2.66 billion in the first half of 2016.

Meanwhile, Gamesa reported a record revenue total of €1.5 billion in its final quarterly financial results as a standalone player, up more than 45% on the same period in 2016, the Spanish manufacturer said.

Net profit totalled €100 million as underlying Ebit — excluding the negative effects from Adwen and the merger with Siemens— was €181 million, a 52% increase from last year.

The merger of Gamesa with German manufacturer Siemens, resulting in Siemens Gamesa Renewable Energy (SGRE), was completed on 3 April.

Gamesa said SGRE will release a new business plan in the second half of 2017, but the combined company has an industry-leading backlog of €22.2 billion.

Mixed results for German trio

Nordex reported a 13.4% fall in Ebitda in its Q1 results, but maintains the results are in line with expectations.

Ebitda totalled €51.2 million in the quarter, down from €59.1 million in the same period of 2016.

Revenue, however, increased 3.7% from €639.7 million to €663.6 million, thanks to a 1.8% increase in sales, mostly in its servicing business.

"Our medium-term goal is to improve market share and profitability. For this reason, we are stepping up spending on our technology as well as lowering production costs," said new CEO Jose Luis Blanco, who was appointed in March, after Lars Bondo Krogsgaard quit following a poor performance forecast.

Senvion reported a loss of earnings in Q1 2017, due to the factory closures and staff lay-offs, mainly in Germany, announced in March as part of a restructuring programme to ensure global competitiveness.

As a result, the company's Ebitda after extraordinary items for the first quarter of the year shows a loss of €11.4 million.

Underlying Ebitda, however, increased 11.3% to EUR21.4 million. The company said lower operation expenditure was proof its restructuring programme was "already bearing fruit".

Revenues increased 7.7% to €392 million thanks to a 219% increase in offshore revenues to €91 million, from €29 million a year earlier, due to the delivery of turbines to the 332MW Nordsee One project.

Enercon has not disclosed 2016 revenue or net profit. The private company installed 3,832MW of new capacity globally in 2016, 23% up on 2015's 3,121MW, and has thereby "overcome the 2015 dip," said managing director Hans-Dieter Kettwig.

However, the firm's gross performance appears to have dipped. This reached roughly €5 billion in 2016, according to Kettwig, some 4.6% down on gross performance of €5.24 billion in 2015.

Gross performance is revenue plus inventories of unfinished products and projects in progress and other internally capitalised activity. In 2014 and 2015, Enercon revenue was 9-10% lower than gross performance.

Speaking at the Hannover Messe trade fair in April, Kettwig forecast gross performance of roughly €5.5 billion for 2017, with installations expected to reach up to 4GW, slightly higher than 2014's €5.4 billion when installations reached 3,957MW.

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