Tuesday 5/17/22

Wind turbine maker Siemens Gamesa's net loss widens

Order intake fell from €5.5 billion to €1.2 billion in the second quarter

FILED - 22 August 2020, Mecklenburg-Western Pomerania, Mukran: Wind turbines trun in the wind in the Baltic Sea. Spanish-German firm Siemens Gamesa and energy firm Iberdrola have signed agreements to maintain wind turbines totalling 1,928 MW at 69 of the energy group's wind farms in Spain and Portugal for a period of between three and five years. Photo: Jens Büttner/dpa-Zentralbild/ZB.
Wind turbines in the Baltic Sea. Photo: Jens Büttner/dpa/File photo.

Wind turbine manufacturer Siemens Gamesa slid further into the red in the second quarter amid supply chain disruptions and challenges in ramping up its new onshore turbine platform.

For the quarter ended in March, the Hamburg-based company reported a net loss of €377 million ($399 million), compared with the €66-million loss last year.

Order intake fell from €5.5 billion to €1.2 billion in the second quarter.

In releasing the quarter's final figures, the company cited lengthier commercial negotiations for onshore projects and "volatile market dynamics."

The Spanish-German company said issues surrounding the 5.X platform for wind farms was also impacting its financial results. It said ramping up the deployment of the platform "was more complex than initially envisaged."

Worse than expected figures

Jochen Eickholt, Siemens Gamesa's CEO said: "The second quarter results reflect the current internal and external challenges we are facing. We are already implementing actions to address the short-term issues and stabilize the company in the shortest possible time, and we are already working on a plan to deliver our full potential."

Siemens Gamesa had already presented preliminary figures at the end of April, which were significantly worse than expected. The company suspended its forecast for fiscal year 2022.

Wind turbine maker Siemens Gamesa's net loss widens