Gamesa obtained €62 million euro in net profit in the first quarter of 2015, i.e. more than triple the €17 million reported in the same period last year.
This improvement reflects sound sales activity and a continuous improvement in the company’s profitability, with an underlying EBIT margin of 8%. The launch of Adwen had a positive impact of €18.5 million on net profit. Excluding that transaction, underlying net profit was €44 million, 2.6 times the corresponding figure for the same period of last year. These results are in line with 2015 guidance and support the trend in profitable growth that began in 2014.
|Revenues: €820 million (+43%)|
|Sales in MW: 712 MWe (+25.6%)|
|Underlying EBIT: €66 million (vs. €34 million, +92%)|
|Underlying EBIT margin: 8% (vs. 6%, +2 p.p.)|
|Underlying net income: €44 million (vs. €17 million)|
|Net income: €62 million (vs. €17 million)|
|Net financial debt: €125 million (vs. €655 million)|
Stronger commercial performance
Sales performance in the first quarter of the year reinforces Gamesa’s trend in growth, having increased by 43% to €820 million. That figure is mainly attributable to sharp growth in revenues from the WTG division, +52% with respect to Q1 2014, principally due to growth in activity to 712 MW.
In terms of markets, growth was supported by a strong contribution from India (27%) and China (24%), and by the recovery in Europe and RoW (17%). Latin America contributed 18%, and the US 14%.
Gamesa’s strong commercial performance, with order intake of 818 MW in the first quarter (+65%), provided an order book of 2,602 MW (+50%) at the end of March, covering 83% of the mid-point of sales guidance for the year (2,800-3,100 MWe).
Operating and maintenance service revenues were stable, amounting to €108 million (+3%), and the EBIT margin was 12.5%.
Sound financial position and improvements in profitability
In a context of growing demand, Gamesa continued to strengthen profitability, driven by growth in revenues, the optimisation of cost variables and the positive impact of the currency effect.
As a result, the company ended the first quarter of 2015 with underlying EBIT of €66 million (+92%), i.e. an underlying EBIT margin of 8% (+2 percentage points), which is in line with guidance for the year (?8%).
The company is also strengthening its balance sheet by controlling working capital and focusing capex. As a result, net interest-bearing debt amounted to €125 million (vs. €655 million), providing a NFD/EBITDA ratio of 0.3x at the end of the quarter.