Offshore Wind Senvion’s Bright Spot

Hamburg-based wind turbine maker Senvion recorded EUR 29 million revenue generated by its offshore wind segment in the first quarter of 2016, a 3.6% increase compared to EUR 28 million offshore wind-related  revenue reported for the same period a year earlier.

Net firm orders for the quarter stood at EUR 1.8 billion, with 35 percent in offshore net firm orders representing the largest share of the active pipeline, Senvion said in the financial report for the quarter ended 31 March, 2016.

Service contracts brought Senvion EUR 73 million in Q1 2016 (EUR 56 million in Q1 2015), continuing to be the company’s 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.

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, according to the report.

Overall, Senvion generated revenues of EUR 364 million in the first quarter of 2016, with onshore revenues standing at EUR 262 million, a 29% dip compared to EUR 369 million generated from the company’s onshore wind division in the first quarter of 2015.

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.”