Siemens Gamesa Renewable Energy released its results for the second quarter of fiscal year 2018 (January-March). Commercial activity in Q2 2018 remained strong: After three consecutive quarters of growth in order intake, the order backlog has reached €22,041 million and is back to market-peak levels of March 2017, the company states.
During the period January-March, Siemens Gamesa signed more than €3,000 million in firm orders reaching full coverage of the low end of the 2018 revenue guidance (€9.0-9.6 billion).
By business unit, Q2 2018 ended with a record onshore order intake of 2,464 MW, 54% more than in the same period of the previous year. Offshore order intake in this quarter reflects expected volatility with 328 MW in firm orders. The company also states that it signed an exclusivity agreement to develop the world’s largest offshore wind farm to date (1.4 GW).
Financial results
The group’s financial performance in Q2 and the first half of 2018 is in line with the 2018 guidance (revenues of €9.0-9.6 billion and EBIT margin of 7-8%). Sales amounted to €2,242 million (-29% y/y), resulting in €4,369 million (-26% y/y) for the first half of the year.
EBIT pre PPA, restructuring, and integration costs in the quarter amounted to €189 million and the EBIT margin increased to 8.4%, compared to 6.3% achieved in the previous quarter. In the first half of the year, EBIT pre PPA, restructuring, and integration costs reached €322 million, and the EBIT margin was 7.4%.
As a result, the company reported a net income of €35 million for the quarter, including the impact of restructuring and integration costs, which led to zero reported income for the first half of the year. The company closed the quarter with a net debt position of €112 million impacted by seasonality of working capital.
Note: All financial information and key figures are non-audited. All historic information prior to April 2017 are pro-forma and based on legacy businesses’ reported information
Note: EBIT pre PPA, I&R cost excludes the impact of PPA on the amortization of intangibles (€158m in H118 and €75m in Q218) and integration and restructuring costs (€75m and €61m, respectively).
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