Senvion's H1 Results on Target

11 Aug 2017

Senvion, a leading global manufacturer of wind turbines, posted revenues of EUR 830 million in the first half of 2017 with an adjusted EBITDA margin of 7.4%, backed by a strong performance in the service and offshore sector. The orders in the first six months totaled EUR 940 million, a 70 % increase on the same period in 2016. Orders came mostly from Germany, the UK, France and new markets such as Croatia and Serbia. The firm order intake also includes a EUR 307 million offshore order in Germany.

With an order book of EUR 5.5 billion, the company sees a solid and stable order intake, including large international orders both in current and new markets. Senvion forecasts a strong order intake of EUR 2 billion for 2017. The success in the new markets is underpinned by the recent financial close for the 299 megawatt (MW) conditional contract for two projects in Chile. The completion of the two projects is now scheduled for fall 2018. As a result and as indicated earlier, Senvion's forecast revenues will partly shift to 2018 leading to an adjusted revenue guidance for 2017 of EUR 1.90-1.95 billion. However, this will not affect the guided adjusted EBITDA margin of the company which will stay unchanged at 8.0 - 8.5%.

Senvion CEO J├╝rgen Geissinger said: "Our performance in the first six months of 2017 is in line with our expectations. Senvion continues to face a challenging environment whilst we are remaining on track. We have been making progress in shaping our company for the future in times of fast decreasing levelised costs of energy (LCoE) as many markets shift to auction-based systems. Our order intake is growing and we continue to introduce products successfully. Our Chile contract has finally closed financing and is now being converted into a firm order, which is another milestone for our company. We have established long-lasting relationships that will surely lead to a close collaboration on future projects."

Since April 2017, Senvion has launched three new products, demonstrating that the modular product strategy is paying off: Senvion signed a conditional contract with RES Australia and its project partners for the 116-turbine Murra Warra wind farm in Australia for over 429 MW, the largest ever onshore project for Senvion.

In the first six months of 2017, onshore revenues declined by 25% to EUR 491 million, while service revenues increased by 10% to EUR 151 million. The highlight of the first six months was the outstanding increase of offshore revenues by 145 percent to EUR 184 million. Senvion's adjusted EBITDA amounted to EUR 62 million with a margin of 7.4%, in line with the guidance. Net debt increased to EUR 261 million with cash levels at EUR 150 million due to inventory buildup ahead of the installation in Chile and some other markets.

Manav Sharma, CFO of Senvion, commented: "We feel confident of our performance so far in 2017. Our ability to successfully enter new markets demonstrates the levels of growth we are aiming to achieve. The cost reductions associated with our Move Forward efficiency program helped us to reduce the H1 underlying OPEX run rate by 19%. Due to the refinancing in Q2, our underlying interest costs also decreased by 19% and are likely to decrease to an even lower quarterly run rate as full effects from refinancing become visible."

Senvion | http://www.senvion.com