Offshore Wind Lifts Siemens Wind Power

Siemens reported triple-digit jumps in orders and profit at its Wind Power and Renewables division in the third quarter of the Fiscal Year 2016, mostly due to two large orders received for offshore wind farm projects in the UK and Germany.

Orders at the Wind Power and Renewables division soared by 294% to EUR 2.73 billion, compared to EUR 693 million recorded in the third quarter of FY 2015.

This includes a EUR 1.4 billion order for the 588MW Beatrice offshore wind farm, including service, and a EUR 500 million order for an offshore wind farm in Germany.

The division’s revenue reached a new high on a quarterly basis due to increases in both offshore and onshore new unit businesses as well as in the service business.

Revenue jumped 22% to EUR 1.72 billion in the quarter, as compared to EUR 1.42 billion reported for Q3 FY 2015.

Strong profitability includes higher revenue, a more favorable revenue mix, and lower production and installation costs, Siemens said.

The Wind Power and Renewables division ended the third quarter of FY 2016 with a profit of EUR 143 million, a 178% jump compared to EUR 51 million profit in Q3 FY 2015.