The sharp acceleration in sales activity in the third quarter (870 MW) increased the backlog at end-September to 2,137 MW (+45%), improving sales visibility for the coming years.
Revenues totalled €1,942 million, 17% more than in 2013. EBIT increased by 37% to €123 million, with an EBIT margin of 7.3% at constant exchange rates.
The company is preparing for a future of profitable growth: through strengthening its balance sheet by reducing net financial debt to €308 million (-60%), due to operating improvements and a 10% capital increase.
Gamesa doubled its net profit in the first nine months of the year, to €64 million, compared with €31 million in the same period of 2013. That figure reflects the improvement in revenues (+17%) and margins, with an EBIT of 7.3% at constant exchange rates1.
|Revenues: €1,942 million (+17.4%)|
|Sales in MW: 1,832 MWe (+30.6%)|
|EBIT: €123 million (+37.3%)|
|EBIT margin: 6.4% (vs. 5.4%, +1 p.p) Ebit margin at constant exchange rates1: 7.3%(+2 p.p.).|
|Net incomet: €64 million (vs. €31 million, +106%)|
|Net financial debt: €308 million (-60%)|
|NFD/EBITDA: 1.0x (vs. 2.8x)|
Acceleration in sales and activity
Gamesa’s revenues increased by 17% in the first nine months of the year, to €1,942 million, supported by the increase in revenues in wind turbine manufacturing (+17%) and O&M services (+20%). Activity volume maintained the positive performance that commenced in the fourth quarter of 2013, to reach 1,832 MWe, 31% more than in the same period of 2013. This improvement is due to the contribution from Latin America (35% of total sales), India (27%) and Europe and RoW (17%). Sales continued to recover in the US and China, which contributed 16% and 5%, respectively.
In a context of rising global demand, the sharp acceleration in sales in the third quarter, with 870 MW signed (+129% vs. Q3 2013), enabled Gamesa to attain a total order intake of 2,167 MW at the end of September 2014 (+78%). Gamesa’s order book at the end of September totalled 2,137 MW (+45%), covering the high end of the target sales range for 2014 (2,200-2,400 MWe) and increasing sales visibility in 2015 and 2016.
Growth in profitability and sound finances
Growing activity volume, together with cost optimisation, accelerated the improvement in profitability ratios. EBIT amounted to €123 million in the first nine months of the year, 37% higher than in the same period of 2013, providing an EBIT margin of 6.4%, one percentage point higher than the margin of 5.4% registered in Q3 2013. At constant exchange rates1, the EBIT margin was 7.3% (+2 p.p.). Net profit doubled, to €64 million.
Gamesa also strengthened its balance sheet during the year. In a context of rising activity, the company reduced net financial debt by 60%, to €308 million euro in September, including the impact of the 10% capital increase performed in September. This smaller debt position prepares the company to undertake growth in the future.
Gamesa continues working to complete the binding agreement signed in July 2014 with French company Areva to create a joint venture for the offshore business.