Spain

Spain

Pricing pressure hits SGRE orders growth

SPAIN: Siemens Gamesa Renewable Energy (SGRE) has reported a 29% growth in order intake in the first quarter of its financial year, but lower pricing forced a fall in takings.

Rocky times... SGRE's revenue continues to fall since its inception last year (pic: Siemens Gamesa Renewable Energy / Facebook)
Rocky times... SGRE's revenue continues to fall since its inception last year (pic: Siemens Gamesa Renewable Energy / Facebook)

In the period between October and December 2017, the Spanish-German manufacturer said it received 2.2GW of new onshore turbine orders, topped up with a further 576MW of offshore orders.

Order intake grew 29.2% year on year, from a total of 2.16GW a year earlier. The group also increased its service order book by 6% year on year.

Financially, however, the manufacturer continues to face falling revenues, although the quarter's results were in line with expectations.

Group sales, for both wind turbines and servicing fell 23% to €2.13 billion in the quarter, driven by "pricing and lower sales volume in [onshore turbine]", the company said.

The firm said a slowdown in construction activity, pricing pressure and a "mix of geographies and project types" was also to blame.

SGRE said the wind turbine sales EBIT margin fell to 3.8% in Q1 from 8.3% a year previously.

Gross profit for the manufacturer, which is approaching its first year anniversary of the merger, fell 43% to €249 million.

The firm said it was "on the right path to meet 2018 targets" as it continues to settle in to its new set-up post-merger. Its latest project launches in November introduced a "one segment, one technology" philosophy and shifted its onshore product focus to geared turbines.

SGRE will hold a capital markets day on 15 February 2018, previously scheduled for mid-November 2017, to set out a three-year strategy.

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