Siemens Gamesa registers net losses of 368 million in the first nine months of the year




Siemens Gamesa has recorded net losses of 368 million euros in the first nine months of its fiscal year as a result of the impacts of the increase in the prices of raw materials and the higher launch costs of its 5.X platform, the company informed the National Securities Market Commission (CNMV).

In the middle of this month, the wind turbine manufacturer, which in the first semester had already had a ‘red number’ of 54 million euros, announced that reviewed its exercise guidelines for these impacts, increased by the pandemic, especially in Brazil, which resulted in a provision for onerous contracts related to orders with delivery in 2022 and 2023.

Thus, the group controlled by the multinational Siemens has adjusted its guidelines for fiscal year 2021, with a margin of operating profit (EBIT) pre PPA and before integration and restructuring costs (I&R) in a range of -1% to 0%, while it placed sales in the lower part of the forecast range, with between 10,200 and 10,500 million euros. Regarding the sales in the first nine months Siemens Gamesa’s fiscal year, grew by 11%, to 7,335 million euros.

On the other hand, EBIT pre PPA and before I&R costs reached 81 million, with an EBIT margin of 1.1%. The company has closed June with a net financial debt position of -838 million euros. In addition, as of June 30, Siemens Gamesa has 4,450 million in financing lines, of which some 1,400 million have been drawn down, and with a total available liquidity of about 4,450 million -including 1,400 million of cash position in balance to that date-.

The CEO of the group, Andreas Nauen, has indicated that the company operates in “A complex environment” and has taken “additional steps to balance its risk profile, while not focusing on delivering long-term sustainable profitability.”

Inclusion of indexing clauses

At a press conference, Nauen also pointed out that the group is considering the possibility of including «Indexation clauses» in the contracts with your clients to thus cover the risks of the increase in raw materials.

In this regard, it considered that this increase in the prices of raw materials, such as steel or copper, among others, will make renewables projects “more expensive” and that they increase. “It is inevitable that they become more and more expensive,” he said.

Orders for 32,561 million

Siemens Gamesa closed orders worth 11,864 million euros in the last twelve months, and ended the third quarter of the year with an order book of 32,561 million euros, with an increase of 3% year-on-year. The contracts in the portfolio at June 30 allow covering 100% of the sales guide communicated for the year of 10,200 million.

The volume of orders in the third quarter amounted to 1,520 million euros, reflecting the volatility of the ‘Offshore’ market (offshore wind), with a strong concentration of orders for both wind turbines and services during the second quarter of the current year.

While, the business activity ‘Onshore’ (onshore wind) has closed the quarter with a contracting volume of 1,352 megawatts (MW), 13% more, worth 840 million, which reflects the negative impact of the pandemic the previous year.

The recruitment volume ‘Onshore‘of the last twelve months it reaches 8,538 MW and an amount of 5,538 million. Although the commercial activity of the Siemens Gamesa 5.X platform has been reduced in the quarter, the orders of the platforms with power of 4 MW or higher represented 67% of the total, accumulating 2.7 gigawatts (GW) of firm orders since its launch.

In the ‘Offshore’ market, the wind turbine manufacturer has a firm order book of 7.3 GW and a conditional order book of 7.8 GW.

The ‘Offshore’ market volatility It also affected the Services commercial activity, which registered orders for a value of 534 million in the quarter. The volume of contracts in the last twelve months was 3,068 million.


On the other hand, regarding the possibility that the negative performance of the ‘Onshore’ business could lead to new workforce cuts in Spain, after the closures of the As Somozas (Galicia) and Cuenca (Castilla-La Mancha) plants, the company did not rule out this possibility and indicated that its obligation is “to continually analyze efficiency and seek the best opportunities for employees.” In this sense, the group’s financial director, Beatriz Puente, stressed that any decision is also made “based on profitability.”

Finally, about the rumors of a delisting takeover bid that emerged a few months ago, the company’s management has referred to what was said at the time by its main shareholders -Siemens Energy-, who stated that it had no plans to launch this operation.

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