Siemens Gamesa Has Record Order Backlog of €23.6 Bn in First Half of 2019

Net income amounted to €67 million in the first half, compared to €0 million in the same period last year, and to €49 million in the second quarter, an increase of 40 percent YoY.

Spanish renewable energy major Siemens Gamesa has reported the results of the first half (October-March) and second quarter (January-March) for the financial year 2019. and the winds have clearly been favourable for the wind major. 

For the first half of FY 2019, the company reported that its revenue increased by 6 percent year-on-year to €4,651 million and by 7 percent in the second quarter, to €2,389 million, supported by strong performance in Offshore and Service.

The company ended the first half of FY 2019 with EBIT pre-PPA and integration and restructuring costs of €316 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 6.8 percent. In the second quarter, EBIT pre-PPA and integration and restructuring costs amounted to €178 million, equivalent to an EBIT margin pre-PPA and integration and restructuring costs of 7.5 percent. This result was reached against a background of declining prices in the order book, partly offset by improvements in productivity, synergies and fixed costs as a result of the L3AD2020 transformation program and the higher volume of activity in Offshore and Service.

Net income amounted to €67 million in the first half, compared to €0 million in the same period last year, and to €49 million in the second quarter, an increase of 40 percent YoY. Net debt amounted to €118 million as of March 31, 2019.

The company reported that commercial activity remained strong during the period, with a record order backlog of €23.6 billion (+7 percent YoY), fully covering the low end of the FY 2019 revenue guidance range, providing enhanced visibility for following years. Order intake amounted to €2.5 billion in the second quarter and was driven by Service, where order intake increased by 11 percent YoY. In the last twelve months, order intake amounted to €10.9 billion (+8 percent YoY), supported by strong performance in all segments.

The company also recently became the first wind turbine manufacturer to attain an investment grade rating. The company obtained a BBB- long-term credit rating, with a positive outlook, from Standard & Poor’s (S&P), and a Baa3 outlook stable rating from Moody’s.