Gamesa Net Profit Amounted to €100 Million on €1,546 Million in Revenues in the First Quarter of 2017

11 May 2017

In the first quarter of 2017, prior to the merger with Siemens Wind Power, Gamesa obtained €100 million net profit, 39% more than in the year-ago quarter. These results were boosted by record quarterly revenues, amounting to €1,546 million, and profitability, with an underlying EBIT margin of 11.7%. 

The figures for the first quarter are in line with the most recent targets for 2017 and do not include the merger with Siemens Wind Power, which was completed on 3 April, giving rise to a world leader in renewable energy. 

Gamesa key figures January-March 2017 (vs. Jan.-Mar. 2016) 

Figures in euro 

* Revenues: 1,546 million (+45.3%) 

* Sales: 1,490 MWe (+40.5%) 

* Underlying EBIT1: 181 million (+52.8%) 

* Underlying EBIT margin: 11.7% (+0.6%) 

* EBIT: 173 million (+46%) 

* Net profit: 100 million (+39.4%) 

* Net cash: 257 million (vs. 194 million)

Record revenues and profitability 

Revenues increased by 45% in the first quarter to €1,546 million as a result of strong growth in wind turbine manufacturing and sales and in the contribution by services. 

In the first quarter, the wind turbine business increased revenues by 48% to €1,412 million as a result of 40.5% growth in activity volume to 1,490 MWe. The countries that contributed most to turbine sales growth were India and the USA, due to their respective legislations. America contributed 48%, Asia 40%, and EMEA (Europe, Africa and the Middle East) 11%. 

Operation and maintenance revenues regained the pace of growth in the period, increasing by 25% to €134 million. 

Commercial activity in the first quarter resulted in firm orders for 827 MW, bringing LTM order intake to 4.5 GW and covering 74% of the volume guidance for 2017: close to 5,000 MW. 

In this context of growing activity, Gamesa obtained €181 million in underlying EBIT (+53%), i.e. an EBIT margin of 11.7%. That figure does not include €8 million in merger costs. Net profit amounted to €100 million, an increase of close to 40%. The company continues to strengthen its balance sheet and ended the quarter with a net cash position of €257 million.

A new era 

Gamesa concluded its life as a standalone company with quarterly results fully in line with the guidance for 2017, coupled with record revenues and profitability, all while fulfilling its commitment to a sound balance sheet. 

The merger with Siemens' wind power arm, which took place on 3 April, produced a new world leader in the wind business, which came into being equipped to address the challenges and seize the opportunities that the wind industry will offer in the short, medium and long term while creating value for all stakeholders. 

On Monday, the Board of Directors appointed Markus Tacke as CEO of the company, succeeding Ignacio Martín, who in April had announced his decision to step down once the merger was completed and the integration process had begun. 

Mr.Tacke will lead the company in this new era with the support of a team of executives drawn from both companies, who have a long track record in the automobile, industrial and energy sectors, thus assuring the group's stability and continuity. 

Markus Tacke serves as CEO of Siemens Gamesa. Tacke has more than 20 years of experience in the energy and power generation sectors, and has held a number of senior executive positions in the industry. Before the merger, he served as CEO of Siemens Wind Power. Before being named CEO of Siemens’ Wind Power Division, Tacke served as CEO of Siemens’ Industrial Power Business Unit. 

He holds a PhD in Mechanical Engineering from Darmstadt University (Germany), and a Master's Degree in Combustion and Fluid Dynamics from Cornell University (New York, USA). Between 2014 and 2016, he served as Chairman of EWEA/Wind Europe, the association for the European wind power industry. 

Andrew Hall, CFO of Siemens Gamesa. From 2015 until the merger with Gamesa, Mr. Hall served as CFO of Siemens Wind Power. He held numerous senior management positions in Siemens AG as CFO for Africa and for North West Europe. 

Andrew Hall holds an MSc in Electrical & Electronic Engineering from the University of Cape Town and an MBA from the London Business School. 

Xabier Etxeberria, CEO Onshore for Siemens Gamesa. From 2012 until the merger, Mr. Etxeberria served as Business Chief Executive Officer at Gamesa. Before joining Gamesa, he spent much of his professional career at the automotive engineering specialist group, GKN, where he served as Managing Director with responsibility over manufacturing, sales and operations, among other duties. He was also Chairman of the Board of the Spanish subsidiary and member of its global Executive Committee since 2011. Between 1994 and 2002 he held several positions at GKN Automotive, heading up manufacturing operations and product development and engineering, among other areas. 

Mr. Etxeberria holds a degree in Industrial Engineering from the University of Bilbao, Spain. 

Michael Hannibal, CEO Offshore for Siemens Gamesa. He has more than ten years of experience in the wind power industry. Prior to the merger, Mr. Hannibal was CEO of the Offshore Wind Power Business Unit at Siemens AG. Previously, he held the position as Vice President, Global Sales Offshore at Siemens Wind Power A/S. 

Mr. Hannibal holds a Bachelor of Science in Electrical Engineering from Aarhus School of Engineering and a Strategic Management and Market Oriented Strategic Business Development from Aarhus Business School. 

Mark Albenze, CEO Services for Siemens Gamesa. From 2014 until the merger, he served as CEO of Siemens Wind Power’s Service business. From 2011 to 2014, Mr. Albenze was CEO of Wind Americas. Over the course of his career, he held various positions in new unit generation sales, supply management, business development and marketing. 

Mr. Albenze holds a Bachelor’s degree in Criminal Justice from Western Michigan University, a Master’s degree in Government from Troy University and a Master’s degree in Management from Webster University. 

David Mesonero, Corporate Development, Strategy and Integration Managing Director of Siemens Gamesa Renewable Energy. Before the merger, he has been Head of Corporate Development at Gamesa. Mr. Mesonero has been with Gamesa since 2010. 

Mr. Mesonero holds a Bachelor’s degree in Business Administration from ICADE and an MBA from IESE. He also has a background as a strategic consultant and investment banker.

José Antonio Cortajarena, Chief Corporate and General Secretary is also Deputy Secretary non member of the Board of Directors. Before the merger, he held the same position in Gamesa. 

Mr. Cortajarena holds a Degree in Law from Universidad del País Vasco and a Master’s in Business Law at IE Business School. He joined the State Attorney corps in 1997, currently on leave. 

Félix Zarza serves as Director of Internal Audit. During the last 14 years, he has been the Director of Internal Audit in Gamesa. Previously, he held different positions within Arthur Andersen and Deloitte. He holds a Degree in Economics and Business Administration from the University of Deusto and he is also a Certified Public Accountant (CPA) (Spanish Institute of Accounts Auditors) 

The executive team's primary objective is to advance with the integration, which is already under way, in order to design the group's strategy and draw up a business plan, expected in the second half of the year.

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