Siemens Gamesa posts 6% rise in sales revenue to €2.33 bn in first quarter

Siemens Gamesa CEO Andreas Nauen

Siemens Gamesa has reported 6 percent increase in sales revenue to €2.336 billion in the first quarter of 2021 against €2.204 billion in Q1 2020.

The wind turbine company reported net loss of €66 million in the first quarter.

Siemens Gamesa’s order book increased 18 percent to €33.7 billion. Siemens Gamesa logs €5.5 billion order intake in the first quarter.

Siemens Gamesa maintained full year EBIT margin guidance at 3 percent to 5 percent. Siemens Gamesa has narrowed the revenue range to €10.2 billion to €10.5 billion, due to project deferrals and execution delays.

“These results are encouraging and we are working to improve our performance but we know we still face challenging conditions with COVID causing disruption in some markets and headwinds from the rising price of raw materials,” said Andreas Nauen, Siemens Gamesa’s Chief Executive Officer.

Siemens Gamesa’s revenue in the first half of fiscal 2021 (October 2020 to March 2021) increased by 10 percent to €4.631 billion. It posted net loss of €54 million in the first half of the year.

Siemens Gamesa signed €5.5 billion in new orders in the quarter, its largest-ever single-quarter order intake, leading to a record backlog of €33.7 billion, up 18 percent. Order intake in the quarter was up in the Onshore, Offshore and Service segments.

The standard volatility in the Offshore market resulted in strong commercial activity, with 2.6 GW in new orders in the quarter and the signature of major firm contracts, including the 1,400 MW Sofia project.

The company’s leadership in the Offshore segment is supported by an 8 GW backlog and 7.4 GW in the conditional pipeline.

Siemens Gamesa is working with customers to prepare for Offshore auctions (around 25 GW) expected in the remaining 9 months of calendar 2021.

Onshore logged new orders amounting to 2.1 GW in the quarter, an increase of 28 percent, reflecting a recovery from the impact of COVID-19 on commercial activity in the same quarter last year. Platforms with capacity of 4 MW or greater accounted for 76 percent of orders received in Q2.

The Siemens Gamesa 5.X platform, which represented 37 percent of onshore order intake, added 782 MW in new orders to reach 2.6 GW since its launch. Service registered sound commercial performance, with €1.2 billion in new orders in the quarter, affected positively by Offshore order intake.

At the end of March, the backlog in Service, where profitability is higher, stood at €16.3 billion, up 13 percent year-on-year, and accounted for 48 percent of the total backlog.

According to the Wood Mackenzie Global Wind Power Market Outlook Update, the pace of global wind installations will resume growth in 2025 and will maintain that trend during the second half of the decade, with total volume projected to be 556 GW, compared with 436 GW in the first half. A sharp increase in offshore installations is expected from 2024, reaching 20 GW per year by 2025 and nearly 40 GW in 2030.