Siemens Gamesa’s performance in the third quarter reflected the impact on backlog profitability of rising commodity prices and the higher-than-expected ramp-up costs for the 5.X platform. That impact resulted in a provision for onerous contracts related to projects to be executed in FY22 and FY23.
Consequently, Siemens Gamesa adjusted its guidance for financial year 2021 with an EBIT margin pre-PPA and before Integration and Restructuring (I&R) costs in the range of -1% to 0%, and group revenue expected to be at the low end of the range announced during the presentation of results for the second quarter (April 30, 2021): €10.2bn to €10.5bn.
Between April and June, Siemens Gamesa’s revenue increased by 12% y/y to €2,704m. EBIT pre PPA and before I&R costs amounted to -€151m in the third quarter, with an EBIT margin of -5.6%. The company reported net income attributable to equity-holders of -€314m.
In the first nine months to June 30, revenue rose by 11% y/y to €7,335m. EBIT pre PPA and before I&R costs totaled €81m, i.e. an EBIT margin of 1.1%. Reported net income was -€368m. Siemens Gamesa's debt position stood at €838m at the end of June 2021.
Siemens Gamesa signed orders worth €11,864m in the last twelve months, and ended Q3 with a backlog worth €32,561m (+3% y/y), €1,100m more than in Q3 20. Siemens Gamesa’s order intake amounted to €1,520m in the third quarter.
The Onshore business unit ended the quarter with €840m (-4% y/y) in new orders, representing a volume of 1,352 MW (+13% y/y). Onshore order intake in the last twelve months amounted to 8,538 MW, worth €5,538m.
Offshore order intake in the quarter stood at €146m and offshore order intake in the last twelve months amounted to €3,259m.
Service achieved orders worth €534m in the quarter. Service order intake in the last twelve months amounted to €3,068m. At the end of June 2021, Service, which is more profitable, accounted for 50% of the backlog (i.e. €16,238m), having increased by 7% year-on-year.