Siemens Gamesa Reports Revenue Drop, Expects Market Demand Increase by 2020

In the third quarter of fiscal year 2017 (from April to June 2017), Siemens Gamesa Renewable Energy’s revenues were down 7% year-on-year. Revenue from the sale of wind turbines decreased by 9%, reflecting lower sales volumes of 1,950W (-25%), as a result of temporary market conditions in the onshore business, as well as normal business volatility in the offshore market, the company said.

The Q3 results were impacted by specific onshore market conditions, including the temporary suspension of the Indian market. Stripping the impact of India, revenues were up 1.6%, according to Siemens Gamesa. In India, there is a market shut down due to a revamp of the auction system, with the market expected to be normalised by the first quarter of fiscal year 2018.

Excluding China, the global market demand for installations is expected to increase by 8% from 36 GW in 2017 to 45 GW in 2020.

In offshore wind, Siemens Gamesa anticipates strong growth of more than 24% annually in offshore installations until 2020. The medium term prospects remain positive with an agreement reached this quarter with DONG Energy for the construction of the Borssele 1 and 2 wind farms, involving 94 turbines (756MW) to be commissioned by the end of 2020.

The O&M service revenue expanded by 8%, as the fleet under maintenance continued to grow, reaching 54 GW worldwide (+13%).