Siemens Gamesa Shines Offshore, Struggles Onshore

Wind turbine manufacturer Siemens Gamesa posted EUR 466 million net loss in the third quarter of FY 2020, attributed largely to the effects of the COVID-19 pandemic and challenges in the onshore segment.

Between April and June, Siemens Gamesa recorded revenues of EUR 2.411 billion, an eight percent decline year-on-year.

Siemens Gamesa’s performance in Q3 reflected the impact of COVID-19 on its operations, which cut EUR 93 million off profit in the quarter, as well as the slowdown of the Indian and Mexican onshore markets, and in the execution of onshore projects in Northern Europe.

Revenues in the first nine months of FY 2020 fell nine percent year-on-year to EUR 6.615 billion, including an accumulated impact of the pandemic of EUR 149 million. Net losses amounted to EUR 805 million in the period.

Offshore Segment Stays Strong

The Offshore Business, on the other hand, signed 2,860 MW in orders in Q3, an 87 percent increase year-on-year. The company’s order total for the last twelve months is 4,211 MW, a 110 percent increase year-on-year.

Overall, Siemens Gamesa has an offshore backlog totalling 7.6 GW, as well as a pipeline of conditional orders and preferred supplier agreements amounting to 9.3 GW.

The Service business saw an order intake of EUR 1.115 million, 20 percent more than the year-ago quarter, linked to the Offshore business, and with contract duration averaging nine years. The order book amounts to EUR 15.1 billion, 48 percent of the company’s total backlog. The Offshore and Service units now represent 78 percent of the company’s backlog.

“We are navigating a complicated period, as an industry and as a company, and the numbers we have presented today reflect that,” Andreas Nauen, the recently appointed CEO of Siemens Gamesa, said.

”Nevertheless, we are already taking measures to turn the Onshore business around and return to profitability. The long-term outlook for our business is promising and our company has the technology and people needed to play a major role in developing a recovery underpinned by clean energies that help combat the effects of climate change.”

Looking ahead, Siemens Gamesa now expects to end the FY 2020 with revenues between EUR 9.5 and EUR 10 billion. This represents a reduction of EUR 1 billion in revenues and of between EUR 200 and EUR 250 million in profitability compared to the previous guidance.