Listen to this article
Spain-based wind turbine manufacturer Siemens Gamesa reported a net loss of €446 million (~$453 million) in the third quarter (Q3) of the fiscal year (October to September), a year-over-year (YoY) increase of 42% from €314 million (~$319 million).
The company posted revenue of €2.43 billion (~$2.47 billion) in Q3, a YoY decline of 10% from €2.7 billion (~$2.76 billion) in the same period last year. The manufacturer said the revenue dip was primarily driven by the company’s ramp-up challenges clubbed with supply chain disruptions on wind turbine generator (WTG) production and project execution activities.
Source: Siemens Gamesa
The overall Earnings Before Interest and Tax (EBIT) for the period amounted to €459 million (~$467 million), a YoY increase of 93% from €238 million (~$242 million).
The EBIT margin for Q3 stood at 14.3% compared to 22.1 % in the same period last year, which the company said was impacted due to ramp-up costs, product cost inflation merged with delays in WTG manufacturing, and project execution driven by quality and supply chain issues.
The company’s WTG manufacturing activity dropped by 30% YoY during the 9-month (9M) of the financial year (FY) 2022, while it fell by 25% YoY in Q3. WTG installation decreased by 4% YoY in 9M and 28% in Q3. The company said disruptions in onshore and offshore projects mainly drove the dip.
The company posted total revenue of €6.44 billion (~$6.57 billion) for the first nine months (9M) with an EBIT margin of 14.8%. The company said that constrained visibility linked to current geopolitical tensions, enhanced macro risk, and the COVID-19 pandemic fuelled the impact on supply chain and direct material costs.
Siemens’ order intake for Q3 was 1.2 GW, a quarter-over-quarter (QoQ) spike of 300% from 0.3 GW in Q2 2022, and a YoY decline of 10.9%. The company has an order backlog of €34 billion (~$34.6 billion), up YoY by 4%, with an order intake that totaled €3.5 billion (~$3.57 billion).
The order intake was driven by strong offshore performance and the recovery of onshore commercial activity. The company recorded an upward trend in the average selling price (ASP), which resulted from a positive impact from the project scope, product and regional mix, and price increases.
Siemens Gamesa accumulated €17.3 million (~$18 billion) from its order backlog in service, a YoY jump of 6.7% from €16.2 million (~$17 billion) in the previous year’s Q3. The company has 84 GW of projects under maintenance, with 69 GW onshore and 15 GW offshore, with a retention rate of 68%.
The company had registered a net loss of €403 million (~$462.05 million) in Q1 2022 from a profit of €11 million (~$12.61 million) in the same period last year.
In June this year, the Spain-based company inked an agreement with Singapore-based Vena Energy to supply its 3.X platform wind turbines for a 133 MW project in the Koppal district of Karnataka in India.