Wind energy giant Siemens Gamesa has released its 2019 financial year results, which it says hit the mark in its guidance to shareholders, saw net income double to €140 million in 2019, and comes with a record order backlog of €25.5 billion, up 12% compared to 2018 results.
In its press statement the company says the positive results have been driven in part by the global energy transition as wind power is increasingly recognised as critical to the fight against climate change.
The company also strengthen its balance sheet with a net cash position of €863 million at the end of FY 2019, up €248 million year-on-year.
The company will continue it's focus on sustaining profitable growth as it aims to optimize structural costs through global white-collar headcount reductions of up to 600 over the next two years.
Despite strong headwinds in the sector, which is experiencing pricing pressure, rising costs and regulatory uncertainty in certain markets, the company delivered an EBIT margin pre-PPA and integration and restructuring costs of 7.1% in line with its guidance to the market.
The order backlog at Siemens Gamesa rose 12% year-on-year to €25.5 billion as its order intake grew by 7.4% to €12.7 billion.
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"There is no question that wind energy is coming of age and is now leading the energy transformation which is so critical to tackling climate change,” said Markus Tacke, CEO of Siemens Gamesa. “These results show that we are successfully adapting to a changing industry and that our L3AD2020 strategy is on the right track to delivering long-term sustainable growth and leadership in our industry.”
Only two "strong players" left in wind energy
Tacke told reporters when announcing the results, that external pressure on the industry, and fierce competition had put wind energy in a period of “rapid consolidation that will leave only the most robust and innovative companies left”.
“If I look at the six main global players, two are either in insolvency already like Senvion … or very close to it, given the specifics of Indian insolvency law. You know the situation about Suzlon,” Tacke said, referring to the beleaguered Indian OEM that is currently under major pressure to restructure financially.
Aside from Chinese OEMs, Tacke said: “We see four players going forward. Two of them are struggling and two are on the strong side. Siemens Gamesa is clearly one of the two on the strong side, delivering our margin and guidance for fiscal 19 and with a clear profitability outlook for the years to come.”