However, the manufacturer remained confident in its ability to recover due to its order backlog rising to a record €31.5 billion by the end of June, plus having strong liquidity with €4 billion in funding lines, from which it has drawn only €1.2 billion.

SGRE’s revenues in April to June fell 8% year on year to €2.4 billion, while Ebit before PPA and integrating and restructuring costs fell to negative €161 million.

The manufacturer stated that its offshore and service units showed strong performance, and now accounted for the majority (78%) of its order backlog.

It explained that the coronavirus pandemic accounted for €93 million of its losses in Q3, while it also faced difficulties in executing projects in northern Europe, and in market slowdown in India and Mexico.

In India, the market has slowed to a halt in recent years following the switch from feed-in tariffs to auction. And in Mexico, the government is facing lawsuits over attempts to slow investments in renewable energy.

The manufacturer recently launched a new turbine tailored to the Indian market in order to strengthen its position there.

In June, SGRE terminated the contact of CEO Markus Tacke, and replaced him with Andreas Nauen.

Siemens Gamesa had withdrawn its financial guidance for its fiscal year – ending 30 September – due to uncertainty caused by the pandemic. But it has now stated that it expects full-year revenues of €9.5-10 billion – which is €200-250 million lower than in previous guidance – and an Ebit margin (before PPA and integration and restructuring costs) of between -3% and -1%.

More to follow.

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