Wind turbine OEM Siemens Gamesa Renewable Energy has withdrawn its financial guidance for the financial year 2020 due to the uncertainty associated with the Covid-19 pandemic, which it said was "compounding challenges in India and northern Europe"
“Given the rapidly evolving nature of the Covid-19 pandemic, uncertainties about the duration and depth of it, and the variety of countermeasures enforced by governments around the world to combat its effects, which include in some countries the mandatory lockdown of manufacturing facilities, Siemens Gamesa Renewable Energy cannot forecast or quantify with reasonable accuracy the full duration and financial magnitude of the impact and considers it prudent to withdraw guidance for financial year (FY) 2020,” the company said in a statement.
The company said it entered the crisis with a strong balance sheet as well as a strong liquidity position.
“During Q2, Siemens Gamesa Renewable Energy experienced further challenges both in the Indian market and in the northern European pipeline. These challenges have been compounded by disruptions caused by Covid-19 that have accelerated the slow-down in the Indian market and complicated execution of the northern Europe pipeline beyond what was reported in Q1 FY 2020.
“Covid-19 disruptions in our supply chain, manufacturing operations, project execution, and commercial activity have primarily affected and adversely impacted the situation in the onshore business. Offshore and service operations might experience some disruptions in the coming months, although these are so far expected to be significantly lower.”
The company plans to hold its Q2 earnings call on 6 May 2020, where it will share additional information.