Nordex's earnings down amid 'fierce competition'

GERMANY: Nordex's revenue and earnings were down, but its order book swelled in the first half of the year.

Nordex has moved components between factories to fulfil its 595MW order in Brazil
Nordex has moved components between factories to fulfil its 595MW order in Brazil

Its sales of €957.1 million marked a 36.2% fall year-on-year, while its earnings before interest, tax, depreciation and amortisation (Ebitda) fell 67.3% to €38.4 million.

The decline mainly reflected lower levels of activity as a consequence of the comparatively low order intake in 2017, the manufacturer stated. 

Nordex had also blamed orders in 2017 for its performance in the first quarter.

It received 2.74GW in orders in 2017, down nearly 22% on the 3.5GW recorded in 2016.

Low order intake in 2017 was also reflected in Nordex’s installations between 1 January and 30 June.

It installed 303 turbines with a combined capacity of 934MW in the first half of the year — down 17.3% on the same period one year earlier.

CEO José Luis Blanco said these results were in line with the company’s expectations.

However, the manufacturer’s orders for both services and projects increased in the first half of 2018.

Service orders grew 121.9% to €217.7 million, while the manufacturer’s order book for services was worth €2.04 billion at the end of June — 9.7% more than its worth on 30 June 2017.

Meanwhile, Nordex received €1.6 billion in project orders between 1 January and 30 June — up 76.8% year-on-year — and its order book was worth €3.18 billion at the end of the first half — 83% more than on the same date last year.

Its order intake of 2.1GW in the first six months of the year was more than double the 900MW it received in the first half of 2017.

The majority (1,091MW) of this was in Latin America — including a 595MW order in Brazil — followed by Europe (751MW), North America (113MW) and the rest of the world (142MW) — including 141MW in South Africa.

Despite the increase in orders, Blanco added the company expects 2018 and 2019 "to remain challenging" due to "fierce competition" and "pressure on prices".

However, he pointed to the company receiving its first order for its low-wind N149/4-4.5MW turbine in June as a cause for optimism.

Further, following the unveiling of its N133/4.8MW turbine for high wind sites, the manufacturer’s 4MW platform now covers all typical wind conditions, the company added.

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