Signs of recovery at SGRE

SPAIN: Siemens Gamesa Renewable Energy (SGRE) has reported a familiar story in its Q3 results, with increasing sales but a fall in revenues.

Siemens Gamesa revenues fall again, but order backlog is at new high

The Spain-based firm, now into its second full year as a merged OEM, made the equivalent of 2,137MW in sales including turbines and servicing in April-June 2018, a 10% increase year-on-year.

Firm order intake totaled €3.3 billion, up from €1.4 million a year ago.

This included 1.66GW in onshore orders (up from 693MW) and 1.37GW from offshore markets (up from 112MW).

Order backlog is now €23.2 billion, up from €20.4 billion a year ago.

However, Q3 revenue fell 21% compared to 2017 to €2.14 billion. Revenue was also down on the previous quarter (Q2) where it totaled €2.24 million.

The manufacturer noted a continuing recovery net profit of €44 million in the third quarter, up from €12 million a year ago.

Net profit in Q2 2018 totaled €35 million, which offset a loss of the same amount in Q1 2018.

In its financial report, SGRE said wind turbine prices "were the main drag on the group's EBIT margin in the third quarter".

Average selling price (ASP) for SGRE’s onshore turbines fell once again. In Q3, ASP totaled €700,000/MW, down from the €740,000/MW reported in Q2.

Across the first nine months of SGRE’s financial year, revenues totaled €6.5 billion, down 25% year-on-year. Ebit before integration costs was €478 million.

SGRE said the Q3 and nine-month results for 2018 were in line with expectations for the year.