Hornsea Two, Formosa I Firm Up Siemens Gamesa Order Book

Business & Finance

Siemens Gamesa’s offshore wind order intake reached a peak in the third quarter of the fiscal year 2018 with 1,368MW in firm orders, due to agreements to supply 165 turbines for Hornsea Project Two and 120MW for the Formosa I Phase II offshore wind project.

According to the company, the achievement is in line with the strong outlook for the global offshore industry due to significant traction in new markets.

The revenue amounted to EUR 2,135 million in Q3 2018, -21% year over year, and EUR 6,504 million in the first nine months of the fiscal year, -25% year over year, which is said to be impacted by lower turbine sale volumes and pricing.

A net profit of EUR 45 million was reported in the first nine months, including the impact of restructuring and integration costs, continuing the recovery, while net debt was EUR 154 million at the end of the third quarter.

Siemens Gamesa said the commercial activity remained strong in the third quarter, during which the order backlog reached a new peak at EUR 23,226 million, 14% more than in Q3 2017. The backlog was boosted by EUR 3,292 million in firm orders, reaching the mid-point of 2018 revenue guidance (EUR 9.000-9.600 million).

EBIT pre-PPA, restructuring and integration costs amounted to EUR 156 million in Q3 2018 and the EBIT margin was 7.3%, while between October and June, EBIT pre-PPA, restructuring and integration costs reached EUR 478 million, with the EBIT margin of 7.4%.

To remind, Siemens Gamesa won a contract in April to supply 20 6MW turbines for the Formosa I phase II project, Taiwan’s first commercial offshore wind farm, and in June announced it will provide and service 165 8MW turbines for Hornsea Project Two in the UK.