Senvion shrinks losses

GERMANY: Lower reorganisation costs and a boost in sales resulted in Senvion's net loss for Q1 2018 reducing by 42% from €49.3 million to €28.3 million.

Senvion reduced its losses, but revenues fell in Q1 2018
Senvion reduced its losses, but revenues fell in Q1 2018

The Q1 loss in 2017 was due to €32.8 million being required for the closing of factories.

This year, Senvion said lower restructuring expenses helped reduce the loss.

However, revenue at the German manufacturer still fell from €392.3 million to €255.6 million, driven by zero offshore wind sales – compared with a €90 million order in Q1 2017 – and a slow onshore market in the UK, Senvion said.

The slip in revenue also forced Senvion’s adjusted Ebitda to fall from €21.4 million to just €0.8 million.

Senvion said the fall in revenue was "typical seasonality" in the wind sector. European rivals Nordex, Vestas and Siemens Gamesa Renewable Energy have also reported lower revenues in the quarter.

Meanwhile, Senvion is gearing up for a busy second half of 2018 and maintained its outlook for the year.

Firm onshore turbine order intake in Q1 2018 totalled €484 million, Senvion said in its results presentation, up 37% from €353 million in Q1 2017.

This increase was due to an almost 8-fold increase in order intake from new markets, the manufacturer said, which grew from €31 million to €267 million in the same period.

The total was offset, however, by a 73% fall in German order intake, which dropped from €169 million to just €45 million.

"We were able to show a very solid strong growth in order intake in the first three months of this year. It was our best first quarter in terms order intake since the IPO. It is a very encouraging sign and it underscores our outlook for 2018 and 2019," Senvion CEO Jürgen Geissinger said.

The firm also said it had "multiple exclusivities and preferred supplier status in many markets amounting to more than 2.5GW".

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