Gamesa reports €170 million net profit (+85%)

Gamesa ended 2015 with €170 million net profit, 85% more than in 2014 (€92 million), supported by sustained growth in revenues (+23%) and profitability (8.4% underlying EBIT margin1). These figures exceed the company’s guidance for 2015 and enable it to step up the targets in the Business Plan for 2017 and bring them forward to 2016.

Key figures 2015 (vs.2014) and fulfilment of 2015 guidance
In euro Guías 2014
Revenues: €3,504 billion (+23%)  €3.400 billion
Sales in MWe: 3,180 MWe (+21%) c. 3,100 MWe
Underlying Ebit1: €294 million (+54%)
Underlying Ebit margin1: 8.4% (vs. 6,7%, +1,7 p.p) ?8%
Net profit: €170 million (+85%)
Net cash: €301 million (vs. €143 million)

Greater commercial activity

Gamesa’s revenues totalled €3.504 billion in 2015, 23% more than in 2014, as a result of expanding revenues in its two business areas: wind turbine generators (+26%) and O&M services (+8%).

In a context of rising demand and supported by the group’s sound commercial position, activity rose 21% to 3,180 MWe, in line with the guidance for the year. The top regions for WTG sales (in MWs) were India (29% of the total) and Latin America (27%). Europe and the Rest of the World accounted for 18%, China for 13% and the US for 11%.

Order intake amounted to 3,883 MW in 2015 (+17%), reflecting Gamesa’s strong sales drive, and in line with the high end of the Business Plan target range for 2017. The order book at year-end stood at 3,197 MW (+28%), enabling the company to begin 2016 with 71%2 of its sales guidance for 2016 (3,800 MWe) already locked in.

Higher profitability and a sound balance sheet

In 2015, Gamesa continued to focus on enhancing profitability and strengthening its balance sheet.

Higher revenues, strict control of structural expenses and ongoing optimisation of variable expenses were the main factors driving higher profitability. Underlying EBIT1 in 2015 amounted to €294 million (+54%), and the underlying EBIT margin was 8.4%. Underlying net profit1 amounted to €175 million. Adwen, a joint venture with Areva in the offshore segment, increased EBIT by €29 million but reduced net profit by €5 million. Including this impact, Gamesa obtained €323 million in EBIT and €170 million in net profit.

In a context of rising activity, and after resuming dividend payments, Gamesa ended the year with a net cash position of €301 million.

Outlook for 2016

Strong sales activity and higher returns drove profitable growth: Gamesa surpassed its targets for 2015, attaining the high end of its guidance range. These results guarantee shareholder value creation and the continuation of the dividend policy, with a 25% pay-out.

Combined with good short-, medium- and long-term prospects for the industry, shaped by stable regulation and rising renewable targets, these results enabled Gamesa to enhance its targets of 2017 and bring them forward to 2016. The company now projects a volume of over 3,800 MW in 2016, with underlying EBIT over €400 million and an EBIT margin ?9% in 2016.

1Underlying EBIT and net profit not including €29 million in EBIT and €-5 million in net profit due to the impact of consolidating Adwen.
2Coverage calculated on the basis of volume guidance for 2016: ?3,800 MWe