Siemens Gamesa Reports Drop in Sales, Boost in Orders

Between October and December 2017, Siemens Gamesa received double the orders for offshore wind turbines compared to the same period of the previous year. 

The company recorded 2.8GW in order intake for the period, which is a 29% increase when looking at the first quarter of its fiscal year 2017 (October-December 2016). During the quarter, Siemens Gamesa presented its first post-merger models of wind turbines to the market as part of its “One Segment/One Technology” philosophy: SG 4.2-145 for onshore and SG 8.0-167 DD for offshore. For the new offshore model, the company received its first order from Vattenfall in November 2017.

The company’s service order book grew 6%, up to EUR 10.34 billion.

Looking at Siemens Gamesa’s sales during the first quarter, it recorded a drop of 23%, amounting to EUR 2.13 billion. Wind turbine sales dropped 26% compared to the first quarter of the previous year, with EUR 1.84 billion made during this year’s first quarter. The company’s O&M sales were at EUR 287 million, decreasing by 1%. Siemens Gamesa says that its overall sales results are in line with its projections for the fiscal year 2018, which foresee EUR 9 billion to EUR 9.6 billion.

Based on the increase in order intake and an accelerated commercial activity, Siemens Gamesa states that it will provide 80% coverage of expected onshore sales and full coverage in the case of offshore.

Overall, the company reported a net debt of EUR 35 million, saying this is due to restructuring and integration costs, the non-cash impact of the US tax reform on the value of tax assets, and amortisation of the PPA.