OEMs remain upbeat on rest of the year after mixed results

WORLDWIDE: Vestas reported a drop in revenues, profits and earnings in its second-quarter financial results, on the back of a "better-than-expected" period in 2016.

Boost… Order for Senvion’s 6.2MW offshore turbine in Q2
Boost… Order for Senvion’s 6.2MW offshore turbine in Q2

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Revenue fell 13.7% from €2.56 billion to €2.2 billion this year. Similarly, earnings before interest, tax, depreciation and amortisation (Ebitda) totalled €398 million in Q2, down 23.9% from a year earlier, and profit from the period was recorded at €186 million, down from €278 million in 2016.

Vestas said the fall in earnings was due to an exceptional period in 2016, which included a 1GW order from Statkraft for the Fosen cluster of projects in Norway.

The company's H1 results were "on par" with 2016, the company said. Revenue for the first six months of 2017 increased slightly to €4.09 billion from €4.02 billion.

First-half Ebitda was about level, while profit for the period totalled €346 million, up 10% from €313 million, the company said.

The outlook for the rest of the year remains positive for Vestas. Order intake for Q2 totalled 2,667MW, the firm said, up from 1,790MW last year, mainly thanks to orders from China, the US and Argentina.

At the end of June 2017, Vestas' order backlog amounted to almost 10.7GW.

Nordex reported healthy growth in turbine orders and its service business in the second quarter of 2017.

The German manufacturer installed 713MW of new capacity in the quarter, up from 416MW in Q1, and received new orders worth €572 million. The company's total order backlog, including service contracts, amounted to €3.6 billion at the end of June.

The service division grew 24% in the first half of 2017 compared with the same period last year, with a turnover of €150.3 million.

Turbine and rotor-blade assembly were 18% and 30% higher in the same period, reflecting the acquisition of Acciona in 2016.

"Our focus is now on landing the projects that we are within an inch of getting," said Nordex CEO Jose Luis Blanco.

Senvion said its revenue of €830 million, a fall of 4.6% year-on-year, was in line with expectations. The firm's results were backed by its servicing and offshore segments, as onshore revenues fell 25% compared with 2016, totalling €490.8 million.

Offshore revenues grew 146% from €75 million to €184.3 million in the first six months of 2017 due to a €307 million order for its 6.2MW turbine for the 203MW Trianel Borkum II offshore project.

Onshore revenues fell in many of Senvion's core markets during H1, including the UK, Canada, Portugal and Belgium. However, there was a 27.5% increase in onshore revenues in Germany.

High climber

India's Suzlon has achieved profitable growth in a "year of transition" amid uncertainty in its home market, its quarterly results show.

Revenue grew by 61.7% to INR 26.65 billion ($415 million) from INR 16.48 billion ($257 million) last year, while Ebitda grew 168% year on year to INR 4.75 billion ($74 million), the results show.

The manufacturer also has a backlog of 1,169MW — including solar projects — worth INR 77.5 billion ($1.2 billion).

The firm delivered 326MW of turbines in Q2, up from 204MW a year earlier, and commissioned India's tallest turbine, an S111 2.1MW with a hub height of 140 metres.

But Suzlon's profits come against a backdrop of uncertainty in the Indian wind market, with the country's transition from feed-in-tariffs to competitive bidding following the first federal auction in February. State governments' desire to follow suit has created "temporary volatility", group chief executive JP Chalasani said.

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