Strong commercial activity boosted order intake to 3,990 MW in the last twelve months, with orders from 25 different countries, enhancing medium-term visibility and in line with the Business Plan 2015-2017. Revenue growth, driven by higher wind turbine sales, reflects the company’s competitive position, with diversified exposure to developed and emerging markets. In a context of expanding activity, Gamesa improved profitability as the underlying EBIT margin reached 8.1%, in line with the target in the Business Plan 2015-17.
Results for the first nine months of 2015 ratify Gamesa’s good performance, with significant improvements in revenues, returns, net profit and the balance sheet, in line with the Business Plan 2015-17. Between January and September 2015, the company doubled net profit to €126 million, driven by improvements in revenues (+30.4%) and underlying EBIT1 (+67.2%).
|Revenues: €2,533 million (+30.4%)|
|Sales in MW: 2,301 MWe (+25.6%)|
|Underlying Ebit1: €206 million (+67.2%)|
|Ebit1: €235 million (+90.4%)|
|Underlying Ebit Margin1: 8.1% (vs. 6.4%, +1.8 p.p.)|
|Underlying net profit1: 122 million (+90.2%)|
|Net profit: 126 million (vs. 64 million, +96.4%)|
Strong commercial activity boosted sales and order intake
Gamesa’s revenues increased by 30.4% to €2,533 million in the first nine months of 2015, driven by strong growth in wind turbine revenues (+35%) as activity surged 26% to 2,301 MWe following eight straight quarters of double-digit growth. Operation and maintenance services revenues increased by 7% to €345 million in the period.
This increase in activity and sales reflects Gamesa’s competitive position: it remains a leading player in emerging markets and is strengthening its foothold in developed markets. India accounted for 28% of MW sold, followed by Latin America (25%) and Europe & RoW (21%). China contributed 15% and the USA, 11%.
Order intake in the first nine months of 2015 amounted to 2,841 MW, bringing the order book at the end of September to 3,034 MW (+42%), assuring 100% of the sales volume target for 2015 (c. 3,100 MW). This positive commercial performance (order intake of close to 4,000 MW in the last twelve months) lends visibility to medium-term sales projections and is in line with the volumes projected for 2017: c. 3,500-3,800 MW.
Rising profitability and a sound balance sheet
In a situation of rising demand, Gamesa continues to enhance profitability and strengthen its balance sheet.
In the first nine months of 2015, underlying EBIT1 amounted to €206 million (+67.2%), equivalent to an underlying EBIT margin of 8.1% (+1.8 p.p.). The gain in profitability was driven by sales growth, coupled with strict control of structural costs, optimisation of variable costs and an improvement in exchange rates with respect to 2014. Net profit amounted to €126 million, double the €64 million reported in the same period of 2014.
Gamesa also prioritises control of its balance sheet, with a net debt position at end-September of €70 million, having reduced it by €238 million in the last 12 months. A dividend amounting to €23 million was paid in the third quarter of 2015, after resumption of the dividend out of 2014 earnings.
Expanded product line
In line with the Business Plan 2015-2017, this year Gamesa launched new platforms to complete its product line, which improves its access to markets such as northern Europe while also enabling it to enter new markets such as Canada, Australia and South Africa and thereby cater for 100% of the world onshore market.
Gamesa has launched a new turbine for low winds, G126-2.5 MW, and is set to unveil the first wind turbine in its 3.3 MW platform next week at EWEA 2015.
1 Underlying EBIT and net profit not including the impact of creating and recognising Adwen (€29 million in EBIT and €4 million in net profit in the first nine months).