Gamesa goes into profit for 1H 2013

SPAIN: Spanish turbine manufacturer Gamesa announced a €22 million net profit for the first half of 2013, compared to a €33 million loss over the same period last year.

Gamesa CEO Ignacio Martín attributed the result mainly to Gamesa's austerity restructuring plan 2013-2015, together with increased focus on its operation and maintenance (O&M) division, which was behind 16% of sales, an 18% increase on the first half of 2012.

In all, Gamesa brought home €66 million in earnings before interest and taxes (EBIT), 376.2% up. EBIT margin finished the period at 5.9%, against 0.9% the year before.

Gamesa share value on Madrid's stock exchange opened 7.83% up this morning from close of session yesterday, which was before results were announced.

Market observers also praised the company. Gamesa "has done a great job meeting [its] plan, particularly as Europe’s growth in renewables slows and the regulatory situation in Spain remains so volatile," Peter Sweatman of renewables consultants Climate Strategy told Windpower Monthly.

Still, Gamesa's capacity sales of 950MW, bringing in €1.12 billion, were down 16% and 26.4% against first half 2012, respectively.

Martín attributed the downturn mainly to a slump in US activity and China's growing preference for local turbine suppliers. Gamesa achieved 4% and 5% of first-half 2013 sales in those countries, respectively, against 25% and 5% the previous year.

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