Gamesa ended the first half of 2016 with record orders, revenues and returns. The company reported €138 million in net profit in the first half, a 42% increase, on €2,192 million in revenues (+33%), and €2301 million in EBIT, plus a record 1,180 MW in order intake.
This performance, which is higher than projected at the beginning of the year, enabled the company to upgrade its guidance for 2016 in terms of both volume (?4,000 MWe) and operating profitability (EBIT ?€430 million and EBIT margin ?9.5%).
||Upgraded 2016 guidance|
|Revenues: €2,192 million (+32.8%)|
|Sales: 2,180 MWe (+47.1%)||?4,000 MWe|
|EBIT: €230 million (+69.7%1)||?€430 million|
|EBIT margin: 10.5% (vs. 8.1%1)||?9.5%|
|Net profit (excluding Adwen): €151 million (+75.9%1)|
|Net profit (including Adwen): €138 million (+42%1)|
|Net cash: : €287 million (vs. 39 million)|
Strong commercial activity: record revenues and orders
Between January and June, Gamesa achieved €2,192 million in revenues, 33% more than in the same period of 2015, driven by strong growth in wind turbine manufacture and sales, which provided €1,964 million in revenues (+38%) on a 47% increase in volume, to 2,180 MW in the first half, marking eleven straight quarters of double-digit growth.
The upgrade is due mainly to growth achieved in India (which contributed 30% of WTG sales), Latin America (29%), Europe (22%) and the US (14%).
Strong commercial performance is also evident in the record order intake, which increased by 16% to 1,180 MWe in the second quarter. The order book at end-June 2016 stood at 3,228 MW, exceeding the low end of the initial guidance for the full year (>3,800 MWe1) and supporting an upgrade to the full-year guidance (?4,000 MWe). Moreover, the G114-2.0 MW and 2.5 MW model accounted for 55% of order intake in the first half.
Operation and maintenance service revenues were in line with the projections in the Business Plan 2015-2017: €228 million, with an EBIT margin of 13.7%.
In this context of growing activity, Gamesa continued to boost profitability through control of structural expenses and continuous improvement of variable expenses. It ended the first half of 2016 with EBIT of €230 million (+70%1) and an EBIT margin of 10.5%.
Net profit amounted to €138 million, including a €13.5 million negative impact from Adwen. Excluding this effect, net profit would have amounted to €151 million (+76%).
The company remains focused on strengthening its balance sheet and ended the period with a net cash position of €287 million.
Merger agreement with Siemens Wind Power
The company continued to advance its strategy of long-term value creation through the signature, on 17 June, of an agreement to merge with the wind assets of Siemens to create a world leader in the wind power business, listed in Spain with registered offices in Zamudio, that will have a sustainable medium- and long-term value proposition for all its stakeholders.
1 For comparison purposes, the impact of Adwen is excluded in both years: net profit in H1 2016 excludes items amounting to -€13.5 million. In H1 2015, EBIT and net profit exclude +€29 million and +€11.2 million, respectively.
2Coverage calculated as orders received for activity in 2016 with respect to the activity guidance for 2016 (February > 3,800 MWe)