Siemens Gamesa (SG) starts this year with profit by 11 million net (Red numbers of 174 million in the same period of 2020, when it closed with a total loss of 918 million).
The net operating result (Ebit) has also set a positive record. From 14 million compared to a loss of 229 million in the previous phase.
In the first quarter of accounting, from October to December, net debt was 476 million. It has funding of 4,400 million, of which only 1,300 million. The sustainable company has an order book of 30.1 billion, which grew by 7% at the beginning of this year due to investments for the energy transition around the world.
Andreas Nauen, CEO of SG, insisted on his strategy to “put profitability over volume”. An approach that has resulted in the closure of four factories in Spain. In a meeting with analysts, the manager added that “we are not yet done” with the “simplification” of the onshore wind division.
Beatriz Puente, financial director of the company, noted that restructuring costs will increase in the coming quarters, which will account for the compensation for the 266 layoffs resulting from the closure of the As Somozas (Lugo) and Cuenca factories. Funding for the adaptations will continue in 2022 and 2023, according to Puente.
SG has also pulled down blinds at a factory in India. Instead, it is building a nacelle and blade factory in the French port of Le Havre to respond to the offshore wind orders it has in the French market. Nauen is pleased with the productivity of the center of Vagos (Portugal), which has collected more than a hundred shovels in eight months. Vagos’ empowerment has led to the liquidation of the As Somozas facilities.
Due to the size of these projects, offshore wind is key to generating sales. It has 9.3 GW in portfolio and participates in auctions with 25 GW in tender. The group expects to receive new orders in the coming quarters, after a period of delay. In fact, no orders for wind turbines came in from October to December off the coast.
Pandemic
With onshore wind, the lower contribution of the Chinese market and the weakness of India are taking their toll. The pandemic has slowed the pace of work in this division, especially with facilities start-up in the United States. From SG, they rely on an improvement of the situation in the coming quarters “and as vaccination campaigns are extended”. The impact of Covid-19 on its activity from October to December was less than in 2020.
The 67% subsidiary of Siemens Energy had this week put forward some data from the first quarter. Among them, net operating income before restructuring charges (Ebit pre PPA), with a profit of 121 million, compared to a loss of 136 million in the same period last year.
Figures that yield a margin on sales of 5.3%. This heading does not include the cost of the adjustments, such as the compensation for the 266 redundancies resulting from the recent announcement of the closure of the Cuenca and As Somozas (Lugo) factories. Previously SG had already closed the centers Aoiz (Navarra) and Miranda de Ebro (Burgos) in Spain.
SG’s income at the beginning of the fiscal year grew to double digits, up 15%, reaching 2,300 million. This increase in turnover is explained by the offshore wind projects started years ago that are now being invoiced. The devaluation of some currencies counteracted the turnover of a group that is active on almost all continents.
Orders coming in the quarter reached 2.3 billion. A halving because in this case the long-term operating cycles of offshore wind did not fit into the data of the accounting close of the first quarter.
The contracts for land turbines and the Maintenance Services division did add things, which also left most of the margin in this sector.
Siemens Gamesa has confirmed its forecasts for this year. Sales will be between 10,200 and 11,200 million. The Ebit pre-PPA margin will be in a band between 3% and 5%.