Siemens Gamesa says it expects to see its strongest growth in offshore and emerging onshore markets in the next five years.
Reporting on its results of the first half of its financial year (October-March) and the second quarter (January-March), the company said revenue increased by 6% year-on-year in the first half of FY 2019, to €4,651M and by 7% in the second quarter, to €2,389M, supported by strong performance in offshore and service.
The company ended the first half of FY 2019 with EBIT of €316M. In the second quarter, EBIT amounted to €178M.
This result was reached against a background of declining prices in the orderbook, partly offset by improvements in productivity, synergies and fixed costs as a result of the company’s transformation programme and the higher volume of activity in offshore and service. Performance was in line with the guidance presented for FY 2019 (revenues of €10,000-€11,000M).
The company highlighted the fact that it has become the first wind turbine manufacturer to attain an investment grade rating. The company obtained a BBB- long-term credit rating, with positive outlook, from Standard & Poor’s and a Baa3 outlook stable rating from Moody’s.
Commercial activity remained strong during the period, with a record order backlog of €23.6Bn (+7% year-on-year, fully covering the low end of the FY 2019 revenue guidance range, providing enhanced visibility for following years).
Order intake amounted to €2.5Bn in the second quarter of FY 2019, driven by service, where order intake increased by 11% year-on-year. In the last 12 months, order intake amounted to €10.9Bn (+8% year-on-year), supported by strong performance in all segments.
The company highlighted the growing role of offshore wind in its order intake in a presentation released with its results. It said it had experienced standard volatility in offshore intake after high order intake in FY 18 (2.3 GW). It said it expects its installed capacity in the offshore wind sector to grow by around 20% by 2025.
The SeaMade project in Belgium entered its order backlog in Q2 2019 and the company reached a supplier framework agreement reached with Eolien Maritime France for 1 GW of projects in France.
Siemens Gamesa was also selected as preferred supplier by Vattenfall for the Hollandse Kust Zuid III and IV auctions with its SG 10.0-193 DD wind turbine.