Spain-based wind engineering company Siemens Gamesa Renewable Energy reported a profit of €286 million ($293.34 million) in the fourth quarter (Q4) of the fiscal year (FY) 2022, a year-on-year (YoY) increase of 210.85% from a loss of €258 million ($264.67 million).

The company recorded a revenue of €3.37 billion ($3.46 billion) in Q4, a 17.8% increase compared to €2.86 billion ($2.93 billion) in the same period last year.

The overall Earnings Before Interest and Tax (EBIT) for the period amounted to €280 million ($287.3 million), a minor YoY increase from a loss of €279 million ($286.2 million). The earnings were impacted by higher-than-expected direct material cost inflation.

Order intake during the quarter increased 53% YoY to €4.41 billion ($4.52 billion), out of which €1.57 billion ($1.61 billion) came from offshore, a 76% year-over-year increase. Orders for onshore amounted to €1.74 billion ($1.78 billion) — twice the figure registered in the same period of the previous year — and €1.1 billion ($1.12 billion) in service, a 3% YoY decrease.

The sale of the portfolio of wind development assets in southern Europe was completed in Q4 22, with a positive impact on both revenue €613 million ($630.65) and EBIT €565 million ($581.27) in the wind turbine generator division.

The total order intake of the firm accounted for 1,360 MW, a YoY decrease of 1%.

Fiscal Year 2022

The company recorded a net loss of €940 million ($964.03 million) for the whole of FY 2022, a YoY plunge of 49.9% compared to a loss of €627 million ($642.74 million).

Revenue stood at €9.81 billion ($10.05 billion) in FY 2022, a decrease of 3.8% from €10.2 billion ($10.45 billion) in FY 2021.

The EBIT for FY 2022 was recorded at a loss of €942 million ($965.82 million), a YoY increase of 80.46% compared to the loss of €522 million ($535.21 million).

The total order intake of the firm accounted for 4,610 MW, a YoY decrease of 36%.

Siemens Gamesa signed orders for €11.6 billion ($11.9 billion) in the last 12 months, boosting the company’s backlog to a record €35.05 billion ($35.98 billion), a YoY increase of €2.51 billion ($2.57 billion). It signed preferential supply agreements for 1.8 GW in Poland and 0.9 GW in Germany.

The company said its performance during the fiscal year reflected the ongoing market imbalances caused by persisting supply chain disruptions, geopolitical tensions, upward pressure on the price of inputs and shipping, and additional waves of the COVID pandemic. Internal challenges were posed by the industrialization of the Siemens Gamesa 5.X onshore platform, where progress was slower than expected.

Results were also impacted by increased costs arising from failures and repairs in certain components on established onshore platforms, which particularly impacted the service and onshore businesses.

“The fiscal year 2022 was definitely a very difficult one. But with the launch of the Mistral program, we have set the stage to deliver profitable growth and achieve our long-term vision. Before we get there, we have a transition year ahead of us, still impacted by elevated inflation, supply chain disruptions, and geopolitical risks,” Jochen Eickholt, CEO of Siemens Gamesa, said.

The company said with the launch of its Mistral Strategy program in May 2022 and a new operating model effective as of January 1, 2023, it is set to mitigate ongoing headwinds and stabilize the business for profitable growth in the long term.

In June, the company signed a pact with clean energy company Vena Energy to supply its 3.X platform wind turbines for a 133 MW project in the Koppal district of Karnataka.

In the third quarter (Q3), the company recorded a net loss of €446 million (~$457 million), a year-over-year (YoY) increase of 42% from €314 million (~$322 million).