Siemens Gamesa, an onshore and offshore wind turbine manufacturer and service provider, readjusted its full-year fiscal year 2022 (FY22) guidance as supply chain disruptions continue to impact global wind energy installations. The company’s Q1 FY22, which represents the three-month period which ended December 31, 2021, saw 20% less revenue than the same three-month period in 2020. The company reported a net loss of US$461 million for Q1 FY22. Its net financial debt position is now roughly US$1.25 billion. “Siemens Gamesa entered financial year 2022 amid complex market dynamics, marked by supply chain disruptions that are expected to last longer than previously anticipated. Against this backdrop, the company’s commercial activity remained sound, reflecting the strong growth prospects in the wind industry,” said the company in a statement.
“We remain immersed in a very complex market environment, with disruptions and low visibility in the supply chain,” said Andreas Nauen, Siemens Gamesa’s chief executive officer. “In this context, we continue taking measures to protect our profitability and adapt to these dynamics, which will persist in the coming months. However, we cannot forget the privilege of working in a sector with enormous potential and the promise of improving the future of the planet. Our backlog is a testament to our employees’ hard work and dedication.” Jochen Eickholt will replace Nauen as the new CEO of Siemens Gamesa on March 1, 2022.
Siemens Gamesa was encouraged that its backlog increased to US$38.4 billion as of the end of Q1 FY22, representing a 12% year-over-year increase. However, the company cut its full-year revenue guidance and now expects FY22 revenues to be 2% to 9% lower than FY21 revenue. “Siemens Gamesa will also continue implementing measures throughout the value chain to mitigate increases in logistics and supply chain costs and staff cost control initiatives to support profitability,” said the company in a statement. “The company is also working on other initiatives such as the potential sale of its wind farm pipeline in southern Europe, which should have a positive impact on its results. However, considering the results in Q1 FY22 and the fact that the company does not expect supply conditions to normalize in the remainder of the year, Siemens Gamesa has adjusted its guidance for FY22.”
Commercial Activity
Siemens Gamesa said that 93% of its FY22 revenue guidance is already accounted for in its order book. The company noted that commitments made at the COP26 conference are encouraging as it shows acceleration in the energy transition. Siemens Gamesa saw US$2.83 billion worth of new orders for its commercial business in Q1 FY22, which was 8% higher than Q1 FY21. The Siemens Gamesa 5.X continues to dominate new orders, accounting for 48% of Q1FY22 onshore orders. Launched in spring 2019, the 5.X platform has booked 3.8 GW in cumulative orders.
Siemens Gamesa said that it expects a large volume of offshore auctions in 2022 and a total of 89 GW of actions over the medium-term.
ESG Focus
To its credit, Siemens Gamesa continues to be a leader in ESG practices. Siemens Gamesa was included in the Dow Jones Sustainability Indexes (World and Europe), with a score of 83/100. That puts Siemens Gamesa in the 99th percentile and second overall out of 126 companies.
Although the wind energy continues to be in the gauntlet of a very difficult period of slowing growth, rising interest rates, and supply chain challenges, companies like Siemens Gamesa remain confident in the long-term importance that onshore and offshore wind energy will have in the energy transition.
