Siemens Gamesa doubles losses in its first fiscal quarter, up to 884 million, and increases sales by 9.8%


Siemens Gamesa doubles losses in its first fiscal quarter, up to 884 million, and increases sales by 9.8%


Siemens Gamesa registered net losses of 884 million euros in its first fiscal quarter (October-December 2022), thus doubling the negative result of 403 million euros that it obtained in the same period of the previous year, as reported by the company on Thursday. , which has specified that its financial performance in this first quarter was affected by the result of the evaluation of its installed fleet.

During its review, the group detected "an upward trend" in the failure rate of certain components, which led to higher service and warranty maintenance costs than previously estimated. The company, which has indicated that this situation mainly affected its services division, ensures that it is already implementing mitigation measures to minimize future impacts.

"The negative assessment affecting our services division reflects that we have a lot of work ahead of us to stabilize our business and return to profitability. However, thanks to our Mistral program and despite the extremely difficult macroeconomic and geopolitical context in which we find ourselves , we have made progress in other areas," said Siemens Gamesa CEO Jochen Eickholt.

Between October and December 2022, Siemens Gamesa's sales reached 2,008 million euros, with growth of 9.8% year-on-year.

The group's reported net operating result (EBIT) was -878 million euros, while EBIT pre PPA and before integration and restructuring costs stood at -760 million, with an Ebit margin of -37.8% .

As of December 31, 2022, Siemens Gamesa's net financial debt stood at 1,925 million euros.

During the first quarter of its fiscal year, Siemens Gamesa signed new orders for a value of 1,609 million euros, a figure 35% lower than that of the same period of the previous year. Its order book closed 2022 at 33,698 million euros.

The company has highlighted that, despite the quarterly financial economic performance, the group's Mistral program continued to make progress in stabilizing operations.

Thus, during the first fiscal quarter of 2023, Siemens Gamesa "has made progress in quality, technological development, manufacturing volume, installation and delivery time of the projects of the 'onshore' platform Siemens Gamesa 5.X", a model that represents 74% of the orders (in megawatts) for the quarter.

Regarding the supply chain, the group has stressed that the new orders have protection against inflation, the volatility of product costs and logistical disruptions "far superior" to those signed in the past.

The company has completed the new organization, operational since January 1, 2023, consisting of the integration of the 'onshore' and 'offshore' manufacturing and technology activities under a single direction, which will result "in an improvement of costs and quality", according to what he specified.

The group has also made progress in its restructuring, reaching a preliminary agreement with the unions in Spain. With this new organizational model, Siemens Gamesa expects to obtain "significant cost synergies" through possible integration into Siemens Energy.

The group has also explained that the beginning of the fiscal year 2023 has been marked by a new increase in the prospects for global wind energy demand for the next ten years.

However, he considers that additional actions are needed by governments to reduce the gap between the "ambitious" climate targets and the current figures for installation.

"Both the US Inflation Reduction Act and the REPowerEU program reinforce the good prospects for future growth in demand and the great potential of the wind industry," he says.