Energy, Automobile, EV, Renewable News | Siemens Gamesa to stabilize business and accelerate long-term value creation

Siemens Gamesa to stabilize business and accelerate long-term value creation

August 3, 2022

Siemens Gamesa today announced decisive steps under the Mistral strategy program to accelerate the company’s turnaround after ending a challenging third quarter marked by ongoing difficulties in the wind energy industry as well as internal challenges mainly impacting the onshore pipeline.
The company reported revenue of €2,436 million (-10% year-over-year) in the three months up to June 30, 2022. EBIT pre PPA and before integration and restructuring costs stood at -€343 million, equivalent to an EBIT margin of -14.1%. Reported net income attributable to Siemens Gamesa equity holders amounted to -€446 million between April and June 2022.

In the first nine months of fiscal year 2022, revenue amounted to €6,442 million (-12% year-over-year) and EBIT pre PPA and before integration and restructuring costs to -€957 million, with an EBIT margin of -14.8%. Reported net income attributable to Siemens Gamesa shareholders in the first nine months of fiscal year 2022 amounted to -€1,226 million.

As of June 30, 2022, net debt totaled -€2,275 million. Siemens Gamesa has €4,450 million in committed funding lines, against which it has drawn €2,651 million, and total liquidity amounts to €3,036 million, including cash on the balance sheet at the end of the third quarter of fiscal year 2022 (€1,237 million).

Siemens Gamesa’s performance continued to be negatively affected by volatile market dynamics – inflation of energy, raw material and logistics costs, non-availability of key wind turbine components, port congestion, and supply delays. All these factors impacted manufacturing, project execution and delivery. There were also internal challenges, including a difficult ramp-up of the Siemens Gamesa 5.X onshore platform and higher costs driven mainly by failure of components and repairs in legacy onshore platforms.

Consequently, the company has adjusted its target for EBIT margin pre PPA and before integration and restructuring costs for fiscal year 2022 to -5.5% after previously announcing -4%. The company maintains its expectation that it will achieve revenue growth in line with the lower end of the previous range of -2% to -9%.

In an extremely challenging situation, the strong momentum in renewables boosted the company’s backlog to a record €33,980 million, once again showing that Siemens Gamesa is well positioned to unlock renewables’ growth potential, driven by the need to secure energy independence and address the climate emergency.

Siemens Gamesa’s order intake from April to June amounted to €3,523 million: €2,094 million in Offshore (up 14.3-fold year-over-year), €1,068 million in new orders in Onshore (+27% year-over-year), and €361 million in Service (-32% year-over-year). Order intake during this quarter was 2.3 times the figure registered in the third quarter of fiscal year 2021.

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