Spain

Spain

SGRE records €466 million loss for Q3

Siemens Gamesa Renewable Energy (SGRE) recorded net losses of €466 million in the third quarter of its financial year due to the coronavirus pandemic disrupting supply chains and hindering project execution, as well as market slowdowns in India and Mexico.

Siemens Gamesa Renewable Energy launched a new turbine for India to strengthen its position in the market
Siemens Gamesa Renewable Energy launched a new turbine for India to strengthen its position in the market

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However, the manufacturer remained confident in its ability to recover due to its order backlog rising to a record €31.5 billion by the end of June, plus having strong liquidity with €4 billion in funding lines, from which it has drawn only €1.2 billion.

SGRE's revenues in April to June fell 8% year on year to €2.4 billion, while Ebit before PPA and integrating and restructuring costs fell to negative €161 million.

The manufacturer stated that its offshore and service units showed strong performance, and now accounted for the majority (78%) of its order backlog.

It explained that the coronavirus pandemic accounted for €93 million of its losses in Q3, while it also faced difficulties in executing projects in northern Europe, and in market slowdown in India and Mexico.

In India, the market has slowed to a halt in recent years following the switch from feed-in tariffs to auction. And in Mexico, the government is facing lawsuits over attempts to slow investments in renewable energy.

The manufacturer recently launched a new turbine tailored to the Indian market in order to strengthen its position there.

In June, SGRE terminated the contact of CEO Markus Tacke, and replaced him with Andreas Nauen.

Siemens Gamesa had withdrawn its financial guidance for its fiscal year – ending 30 September – due to uncertainty caused by the pandemic. But it has now stated that it expects full-year revenues of €9.5-10 billion – which is €200-250 million lower than in previous guidance – and an Ebit margin (before PPA and integration and restructuring costs) of between -3% and -1%.

Appointments

Siemens Gamesa has also appointed former co-CEO of MHI Vestas Lars Bondo Krogsgaard to lead its onshore business.

It has promoted head of its American service business Juan Gutiérrez to lead its service unit as Mark Albenze retires, and named former executive managing director for finance and administration at NH Hotels Beatriz Puente as its new chief financial officer.

Krogsgaard resigned from MHI Vestas in November 2019 after 18 months as the company’s co-CEO. He had previously served as Nordex’s CEO between 2015 and 2017 and also held senior positions at Ørsted and Siemens Wind Power.

Puente replaces SGRE’s chief accountant Thomas Spannring, who had filled in as CFO on an interim basis following the departure of David Mesonero

Mesonero later joined Spanish energy giant Iberdrola as deputy to the company’s director of business development.

More to follow.

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