Siemens Gamesa's performance in the second quarter of FY 2020 (January-March) reflected the unexpected effect of the COVID-19 pandemic on its operations and commercial activity, with a direct impact of € 56 million on the company's profitability. Although the lack of short-term predictability has led the company to withdraw the guidance it issued in the first quarter of 2020.
Siemens Gamesa ended the first half of its fiscal year (October 2019 - March 2020) with a order book of € 28.6 billion (+21% YoY). This figure was achieved after signing € 6,830 million (+36% YoY) in the first half and integrating the Service assets acquired from Senvion. Order intake between January and March amounted to € 2,203 million (-11% YoY), reflecting the normal volatility of the Offshore market and the impact of COVID-19 on the signing of Onshore contracts, some of which were deferred to subsequent quarters.
Onshore order intake in the last twelve months increased to 9,485MW (13% YoY) despite the 6% YoY reduction in the second quarter to 1,645MW. Offshore order intake in the last twelve months increased by 56% YoY to 2,879MW. In the second quarter, the company signed a preferred supplier agreement with Ørsted for the Borkum Riffgrund 3 (900MW) and Gode Wind 3 (242MW) wind farms, raising the conditional pipeline to 10.7GW.
Despite the strong commercial activity in the quarter, the expansion of the coronavirus was reflected in the company's revenues and returns. Revenues fell by 8% between January and March, to € 2,204 million, affected by lower sales of wind turbine generators. Revenues in the first half amounted to € 4,204 million (-9.6% YoY).
EBIT pre PPA (Purchase Price Allocation ) and before integration and restructuring costs amounted to € 33 million in the quarter, with an EBIT margin pre PPA and before integration and restructuring costs of 1.5%. The decline in profitability includes the € 56 million direct impact of the coronavirus (equivalent to 2.5% of revenues in the quarter) as well as additional costs derived from the slowdown in the Indian market and in the execution of projects in Northern Europe. EBIT margin pre PPA and before integration and restructuring costs amounted to € -103 million in the first half, equivalent to a margin of -2.5% of revenues. In this context, the company booked losses of €165 million in the second quarter, and € 339 million in the first half.
EBIT pre PPA (Purchase Price Allocation ) and before integration and restructuring costs amounted to € 33 million in the quarter, with an EBIT margin pre PPA and before integration and restructuring costs of 1.5%. The decline in profitability includes the € 56 million direct impact of the coronavirus (equivalent to 2.5% of revenues in the quarter) as well as additional costs derived from the slowdown in the Indian market and in the execution of projects in Northern Europe. EBIT margin pre PPA and before integration and restructuring costs amounted to € -103 million in the first half, equivalent to a margin of -2.5% of revenues. In this context, the company booked losses of €165 million in the second quarter, and € 339 million in the first half.
