Gamesa reports €72 million net profit on €1,064 million in revenues

Net profit excluding the impact of Adwen amounted to €80 million (+82%1 vs. 2015, which included a one-off positive impact of €18 million from the joint venture).

The company maintains the profitable growth envisaged in its Business Plan 2015-2017 and registered its highest-ever EBIT: €119 million (+81%1).

Revenue growth to €1,064 million in the first quarter reflects the group’s solid position and the commercial success of its new products.

In a context of rising activity, Gamesa strengthened its balance sheet and ended the quarter with a net cash position of €194 million.

These results ratify the company’s good performance and assure attainment of the 2016 guidance.

Gamesa ended the first quarter of 2016 with €72 million in net profit. Excluding the impact of Adwen, net profit amounted to €80 million, i.e. an 82%1 increase over the same period of 2015, driven by record activity volume and EBIT. The volume of activity amounted to 1,061 MWe (+49%) and EBIT was €119 million (+81%1), equivalent to an EBIT margin of 11.1%.

These results are attributable to strong sales performance, in line with the commitments for 2016: achieve over 3,800 MWe in volume and above €400 million in EBIT.

Key figures 1Q 2016 (vs. 1Q 2015) 
In euro
Revenues: €1,064 million (+29.7%)
Sales in MW: 1,061 MWe (+49%)
EBIT: €119 million (+81%1)
EBIT margin: 11.1% (vs. 8%1)
Net profit (excluding Adwen): €80 million (+82%1)
Net profit (including Adwen): €72 million (+15%)
Net cash: : €194 million (vs. DFN: -125 million)


Strong growth in sales

Gamesa increased revenues by 30% in the first quarter, to €1,064 million. That figure is mainly due to revenue growth in the wind turbine area (+34%) as a result of rising levels of activity (+49% to 1,061 MWe). Operation and maintenance services revenues were stable, at €108 million.

Ten consecutive quarters of double-digit growth in activity ratify Gamesa’s competitive position based on geographical diversification. Latin America contributed 27% of wind turbine sales (in MWe), followed by India and EMEA (26% each). The US accounted for 16% and Asia-Pacific for 5%.

Order intake in the first three months of 2016 amounted to 1,031 MW, bringing the order book at the end of March to 3,167 MW (+22%), assuring 90%2 of the sales volume target for 2016: >3,800 MWe.

Rising profitability

In this context of growing activity, Gamesa remained focused on increasing profitability through greater control of structural costs and optimisation of variable costs. The company ended the period with record EBIT of €119 million (+81%1), equivalent to an EBIT margin of 11%.

Net profit amounted to €72 million, including an €8 million impact from Adwen. Otherwise, net profit would have been €80 million (+82%1).

The company continues to strengthen its balance sheet, having ended the quarter with a net cash position of €194 million.

1 For comparison purposes, the impact of Adwen is excluded in both years: In 1Q16, Adwen contributed -€8 million to net profit. In 1Q15, Adwen contributed +€29 million to EBIT and +€18.5 million to net profit.

2 Coverage based on total order intake through 31 March 2016 for activity in 2016 with respect to average volume guidance for 2016 (>3,800 MWe).