Siemens Gamesa Renewable Energy says its performance in the second quarter of FY 2020 (January-March) reflected the unexpected effect of the Covid-19 pandemic on its operations and commercial activity, with a direct impact of €56M (US$61M) on profitability
This complicated situation intensified the challenges in the onshore part of the company’s business, mainly in the Indian market and the execution of projects in northern Europe. In the offshore segment, Covid-19 led to extended periods of time at sea for maintenance teams, but that segment was less affected than onshore.
Although a lack of short-term predictability led the company to withdraw the guidance it issued in Q1 2020, the long-term prospects for the industry and Siemens Gamesa remain sound, the company said. It registered a record order backlog of €28.6Bn (+21% year-on-year) and is well positioned to take advantage of sector growth. The company has also maintained a sound liquidity position, with credit lines amounting to €4.0Bn, against which it has drawn just €1.1Bn.
Announcing the results, Siemens Gamesa chief executive Markus Tacke called for a green recovery.
“We are experiencing a situation without precedent. Siemens Gamesa believes the renewables industry must play a key role in the economic recovery to move towards a sustainable energy model that generates quality jobs. It is in our hands to avoid another crisis, the climate crisis.”
The company said order intake between January and March amounted to €2,203M (-11% year-on-year), reflecting the normal volatility of the offshore market and the impact of Covid-19 on the signing of onshore contracts, some of which were deferred to subsequent quarters. Offshore order intake in the last 12 months increased by 56% year-on-year to 2,879 MW.
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