- Siemens Gamesa Renewable Energy, a major global manufacturer wind turbines has announced less than stella results for the second quarter 2022.
- The company cites product, materials and execution related issues, mostly related to the Siemens Gamesa 5.X platform ramp-up process, as the reason for the huge loss posted for the period.
- Preliminary unaudited results reports revenue of c. €2.2 billion while EBIT pre PPA and I&R costs of c. -€304 million and net debt of -€1.7 billion.
“During the second quarter of the financial year 2022, the ramp-up process of our Siemens Gamesa 5.X platform, which is more complex than previously understood, has continued to impact our production and project execution schedule,” the company said.
The company added that production and profitability have continued to be impacted by further pressure on energy, commodities and transportation costs, availability of key turbine components, harbour congestions, and delayed customers’ investment decisions that are also affecting temporarily their Onshore commercial activity as reflected in a very low order intake in the second quarter.
The continuous evaluation of the order backlog in the WTG segment resulting from considering new higher costs (recent raw material price increase creates a stronger headwind) and new assumptions for market and production conditions, including those related to the Siemens Gamesa 5.X platform, has also impacted the second quarter performance.
The company has signed €1.2 billion in new orders during the second quarter of financial year 2022 plus they have signed an agreement to sell their wind farm development division to British utility SSE, which is expected to bring in €550-million. Read more
Related news: Siemens Gamesa appoints news CEO to steer turnaround
Jochen Eickholt, CEO: “In the six weeks since taking over as CEO I have been asking questions and drilling down into every part of the business to get an understanding of the issues and coming to conclusions about how to address them. As a management team, we are now turning these insights into a program that can quickly get us back on track towards profitability and industry leadership.”
The company concluded that they are reassessing their expectations on SGRE group’s performance for financial year 2022 and therefore their previous guidance for the financial year 2022 is no longer valid and is under review.
Author: Bryan Groenendaal