Monday 9 November 2020

Siemens Gamesa logged a record order intake of €14,736m (+15.6 y/y) during fiscal year 2020, a challenging year dominated by Covid-19 and tough market conditions, ending with a backlog of €30.2bn that provides a solid foundation for the future and reflects the momentum for wind energy.

In the three months to September 30, Siemens Gamesa reported an EBIT pre PPA and before Integration and Restructuring costs of €31m, a margin of 1.1% on €2,868m in revenues. The company reported a decline in revenues for FY20 of 7% year-on-year to €9,483m, with EBIT pre PPA and before Integration and Restructuring costs of -€233m, a margin of -2.5%. Net losses amounted to -€918m.

The FY20 results reflect the continuing slowdown in the Indian market and cost overruns on project execution in Northern Europe, all accentuated by the impact of Covid-19. The global pandemic reduced revenues by c. €1bn, due to lower commercial activity and delays in project execution, and Covid-19 also impacted in EBIT pre PPA and before Integration & Restructuring costs by €181m.

To address these challenges, the company’s new management team, led by the CEO Andreas Nauen who was appointed in June, presented a new business plan for FY21 - FY23 with the goals of turning the Onshore business around and of maintaining profitable growth in the Offshore and Service businesses. Siemens Gamesa maintains its commitment to prioritize profitability (over volume), cash flow and sustainability.

“Siemens Gamesa has started the new fiscal year with strong foundations to return the company to sustainable profitability. Measures underway will improve performance and enhance our strengths, positioning us for leadership in a wind energy industry that has a very bright future leading the fight against climate change,” said Andreas Nauen during the earnings presentation.

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