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Windtech International May June 2024 issue

 

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Siemens Gamesa’s performance in FY21 reflected market imbalances caused by challenging supply chain conditions, with sharp increases in commodity prices, shortages of certain components, logistics bottlenecks and high transportation costs. The impact of these imbalances was particularly intense during the second half of the year and is expected to still affect operations in FY22. The company’s performance in FY21 was also affected by higher-than-expected ramp-up costs for Siemens Gamesa 5.X platform.
 
Revenue in the year from October 2020 to September 2021 amounted to €10,198m (+7.5% y/y), supported by growth in Offshore (+16% y/y) and Service (+9% y/y). Profitability was impacted by commodity price and transport cost increases and by higher ramp-up costs of the Siemens Gamesa 5.X platform, creating the need for provisions for onerous contracts that resulted in EBIT pre PPA and before integration and restructuring costs of -€96m in FY21, with a margin of -0.9% (vs. -2.5% in FY20). Net income to Siemens Gamesa shareholders amounted to -€627m (vs. -€918m in FY20).
 
Siemens Gamesa signed orders worth €12,185m in FY21, and ended the year with an order backlog totaling €32,542m (+7.5% y/y), i.e. €2,294m more than at September 30, 2020.
 
Onshore logged €4,708m (-15% y/y) in new orders in the year. The year-on-year change reflects the company's commercial strategy, focused on controlling risk and prioritizing profits in the projects in the backlog, as well as a slowdown in sales activity on the Siemens Gamesa 5.X platform and a hiatus in the US and Spanish markets. New platforms with capacity of 4 MW or greater accounted for 68% of total order intake in FY21, with the 5.X platform alone accounting for 30%. Offshore order intake in FY21 amounted to €4,068m. The Service division booked new orders worth €3,409m in FY21. As of September 30, 52% of the order backlog, i.e. €16,801m, was in Service, which expanded by 11% year-on-year.
 
The company’s guidance for FY22 reflects the current challenging industry environment: revenue decline between 2% and 7%, and an EBIT margin pre PPA and before integration and restructuring costs between 1% and 4%. The long-term outlook remains strong and unchanged for the company. Siemens Gamesa maintains its target of an 8% to 10% long-term EBIT margin pre PPA and before integration and restructuring costs, which it expects to achieve in FY24/25 (previously FY23), due to the transitory impact of current challenges.
 
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