Siemens Gamesa Renewable Energy ’s (SGRE) performance in the second quarter of FY2020 (January to March) reflected the unexpected effect of the COVID-19 pandemic on operations and commercial activity, with a direct impact of €56 million on the company’s profitability. This intensifies the challenges in the onshore business, mainly in the Indian market and the execution of projects in Northern Europe.
SGRE has maintained a sound liquidity position, with credit lines amounting to €4.0 billion, against which it has drawn just €1.1 billion.
SGRE said that the long-term prospects for both the company and the industry remain sound. It said that the company registered a record order backlog of €28.6 billion (+21 per cent YoY) and is well positioned to take advantage of sector growth. According to the International Energy Agency (IEA), renewables will account for two-thirds of total capacity installed by 2040, with a sustained level of installations averaging 57GW per year.
Markus Tacke, CEO of SGRE, said: “We are experiencing a situation without precedent that has changed our lives in just weeks. SGRE considers that the renewables industry must play a key role in the economic recovery to move towards a sustainable energy model that generates quality jobs. It is in our hands to avoid another crisis, the climate crisis.”
SGRE ended the first half of its fiscal year (October 2019 – March 2020) with a record order book: €28.6 billion (+21 per cent YoY), which sustains good long-term prospects.