Senvion, a leading global manufacturer of wind turbines, has remained on track for its 2016 targets in the first quarter (Jan-Mar) of 2016. The company has continued to pursue international growth, cementing its global presence on the back of market entries in Chile and its office opening in Japan.
Jürgen Geissinger, CEO of Senvion, said: “We had a successful start to the year and delivered on our international growth strategy. We will continue to capitalise on opportunities in target markets as well as foster innovations through R&D investments with the aim to continuously reduce the levelised cost of energy.”
In the first quarter of 2016, Senvion generated revenues of EUR 364 million: onshore revenues were at EUR 262 million (Jan-Mar 2015: EUR 369 million), offshore revenues at EUR 29 million (Jan-Mar 2015: EUR 28 million) and revenues in the service business at EUR 73 million (Jan-Mar 2015: EUR 56 million). Senvion continued to improve its gross margin which now stands at 33.4 per cent (Jan-Mar 2015: 28.8 per cent); helped by a higher proportion of service revenues. Despite lower revenues compared to the first three months of 2015, Senvion achieved an adjusted EBIT margin of 3.8 per cent and adjusted EBITDA margin of 7.5 per cent compared to 3.9 per cent and 7.1 per cent in the previous comparable quarter (Jan-Mar 2015) respective. Senvion’s first quarter results are further underpinned by improvements in working capital and positive free cash flow generation. Net working capital decreased to negative 6.4 percent, unlocking nearly EUR 40 million of additional working capital in the quarter. Cash on hand increased to EUR 439 million as a result of positive free cash flow generation of EUR 20 million.
With an intake of EUR 269 million of firm onshore orders in Q1 2016, Senvion saw a stable order book development, bringing the total order backlog to EUR 5.6 billion. Net firm orders stood at EUR 1.8 billion, with 35 percent in offshore net firm orders representing the largest share of the active pipeline. Service contracts continued to be the fastest growing business platform with annuity-like revenues and attractive margins. Senvion increased its service order book volume by 35 percent year-on-year, while simultaneously extending the average contract length by 7.4 percent, corresponding to 0.7 years. Over the past three years, 75 per cent of existing service contracts were renewed. R&D spending during the first quarter was approximately EUR 18 million and will likely increase throughout the year as Senvion invests in new products.
Senvion’s first quarterly statement is available online and further details can be found in the earnings presentation. Furthermore, the quarterly statement is submitted to the Frankfurt Stock Exchange and is available on the website of the Luxembourg Stock Exchange (https://www.bourse.lu/regulated-information-oam) as officially appointed mechanism for the central storage of regulated information. Senvion will report figures for the second quarter 2016 on 12 August 2016.