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Siemens Gamesa Raises Its Losses To 368 Million In First Nine Months

Siemens Gamesa recorded net losses of 368 million euros in the first nine months of its fiscal year as a result of the impacts of higher raw material prices and higher launch costs for its 5.X platform, reported the company to the National Securities Market Commission (CNMV) .
Siemens Gamesa recorded net losses of 368 million euros in the first nine months of its fiscal year as a result of the impacts of higher raw material prices and higher launch costs for its 5.X platform, reported the company to the National Securities Market Commission (CNMV) .

In the middle of this month, the wind turbine manufacturer, which in the first semester had already had a ‘red number’ of 54 million euros, already announced that it was reviewing its guidelines for the exercise due to these impacts, increased by the pandemic, especially in Brazil, which resulted in a provision for onerous contracts related to orders with delivery in 2022 and 2023.

Thus, the group controlled by the multinational Siemens adjusted its guidelines for fiscal year 2021 , with an EBIT margin before PPA and before integration and restructuring costs (I&R) in a range of -1% to 0%, while placing sales in the lower part of the forecast range, with between 10,200 and 10,500 million euros.

With regard to sales in the first nine months of the fiscal year for Siemens Gamesa, they grew by 11% , to 7,335 million euros. For its part, EBIT pre PPA and before I&R costs reached 81 million, with an EBIT margin of 1.1%. The company closed June with a net financial debt position of -838 million euros.

In addition, as of June 30, Siemens Gamesa has 4,450 million in financing lines , of which some 1,400 million have been drawn down, and with a total available liquidity of about 4,450 million -including 1,400 million of cash position in balance to that date-.

Group CEO Andreas Nauen said the company operates in “a complex environment” and has taken “additional steps to balance its risk profile, while focusing on delivering long-term sustainable profitability.”

32.5 billion order book
Siemens Gamesa closed orders worth 11,864 million euros in the last twelve months, and ended the third quarter of the year with an order book of 32,561 million euros, an increase of 3% year-on-year . The contracts in the portfolio at June 30 allow covering 100% of the sales guide communicated for the year of 10,200 million.

The volume of orders in the third quarter amounted to 1,520 million euros, reflecting the volatility of the offshore market ( offshore wind), with a strong concentration of orders for both wind turbines and services during the second quarter of the current year.

Market onshore and offshore
Meanwhile, onshore commercial activity ( onshore wind) closed the quarter with a contracting volume of 1,352 megawatts (MW), 13% more, worth 840 million, which reflects the negative impact of the pandemic the previous year.

The onshore contracting volume for the last twelve months reaches 8,538 MW and an amount of 5,538 million. Although the commercial activity of the Siemens Gamesa 5.X platform has been reduced in the quarter, the orders of the platforms with power of 4 MW or higher represented 67% of the total, accumulating 2.7 gigawatts (GW) of firm orders since its launch.

In the offshore market , the wind turbine manufacturer has a firm order book of 7.3 GW and a conditional order book of 7.8 GW. The volatility of the offshore market also affected the Services business, which registered orders for 534 million in the quarter. The volume of contracts in the last twelve months was 3,068 million.
In the middle of this month, the wind turbine manufacturer, which in the first semester had already had a ‘red number’ of 54 million euros, already announced that it was reviewing its guidelines for the exercise due to these impacts, increased by the pandemic, especially in Brazil, which resulted in a provision for onerous contracts related to orders with delivery in 2022 and 2023.

Thus, the group controlled by the multinational Siemens adjusted its guidelines for fiscal year 2021 , with an EBIT margin before PPA and before integration and restructuring costs (I&R) in a range of -1% to 0%, while placing sales in the lower part of the forecast range, with between 10,200 and 10,500 million euros.

With regard to sales in the first nine months of the fiscal year for Siemens Gamesa, they grew by 11% , to 7,335 million euros. For its part, EBIT pre PPA and before I&R costs reached 81 million, with an EBIT margin of 1.1%. The company closed June with a net financial debt position of -838 million euros.

In addition, as of June 30, Siemens Gamesa has 4,450 million in financing lines , of which some 1,400 million have been drawn down, and with a total available liquidity of about 4,450 million -including 1,400 million of cash position in balance to that date-.

Group CEO Andreas Nauen said the company operates in “a complex environment” and has taken “additional steps to balance its risk profile, while focusing on delivering long-term sustainable profitability.”

32.5 billion order book
Siemens Gamesa closed orders worth 11,864 million euros in the last twelve months, and ended the third quarter of the year with an order book of 32,561 million euros, an increase of 3% year-on-year . The contracts in the portfolio at June 30 allow covering 100% of the sales guide communicated for the year of 10,200 million.

The volume of orders in the third quarter amounted to 1,520 million euros, reflecting the volatility of the offshore market ( offshore wind), with a strong concentration of orders for both wind turbines and services during the second quarter of the current year.

Market onshore and offshore
Meanwhile, onshore commercial activity ( onshore wind) closed the quarter with a contracting volume of 1,352 megawatts (MW), 13% more, worth 840 million, which reflects the negative impact of the pandemic the previous year.

The onshore contracting volume for the last twelve months reaches 8,538 MW and an amount of 5,538 million. Although the commercial activity of the Siemens Gamesa 5.X platform has been reduced in the quarter, the orders of the platforms with power of 4 MW or higher represented 67% of the total, accumulating 2.7 gigawatts (GW) of firm orders since its launch.

In the offshore market , the wind turbine manufacturer has a firm order book of 7.3 GW and a conditional order book of 7.8 GW. The volatility of the offshore market also affected the Services business, which registered orders for 534 million in the quarter. The volume of contracts in the last twelve months was 3,068 million.