Following the preliminary closing of the first half of financial year 2022, with the company performance severely impacted by product and execution related issues, mostly related to the Siemens Gamesa 5.X platform ramp-up process, and by increasingly difficult market conditions, Siemens Gamesa Renewable Energy (SGRE) has announced its preliminary second quarter results.
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 its production and project execution schedule. Additionally, 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 its 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.
As a result, preliminary unaudited results of the second quarter of financial year 2022 are as follows:
▪ Revenue of c. €2.2 billion.
▪ EBIT pre PPA and I&R costs of c. -€304 million.
▪ Net debt c. -€1.7 billion.
▪ Revenue of c. €2.2 billion.
▪ EBIT pre PPA and I&R costs of c. -€304 million.
▪ Net debt c. -€1.7 billion.
The Group has signed €1.2 billion in new orders during the second quarter of financial year 2022.
Based on the current situation, management is now reassessing its expectations on SGRE group’s performance for financial year 2022 and therefore its previous guidance for the financial year 2022 (disclosed on January 20, 2022) is no longer valid and is under review.
At this time, SGRE will continue to work to achieve revenue within its year-on-year revenue growth range of -9% and -2%1, and towards the low end of its previously communicated EBIT pre PPA and I&R costs margin guidance range of -4%.