Siemens Gamesa sees revenues plummet - but says future still looks bright

By Hull Daily Mail | Posted: 30 Jul 2018

Turnover at Hull wind turbine manufacturer Siemens Gamesa has fallen by a quarter, with lower sales and pricing blamed for the drop.

The renewables company, which employs around 1,000 people at its factory in Alexandra Dock, recorded a revenue of just under £5.8bn for the nine months leading up to June 2018.

The third quarter of Siemens Gamesa’s year – which is April to June – saw revenues slide 21 per cent to £1.9bn.

Despite the news, the manufacturer continues to push forwards with its work in East Yorkshire. Siemens Gamesa recently secured a record-breaking order from fellow offshore wind giant Orsted to create 165 turbines for the Hornsea Project Two.

The company, headquartered in Spain, will also start building bigger, 81.5m turbine blades from 2020, in a bid to meet growing market demand.

Siemens Gamesa said in its annual report: “We expect stronger performance in quarter four, driven by higher volumes, cost optimisation and expected synergies…

“Offshore order intake marked a peak with 1,368 MW in firm orders, due to the agreement to supply 165 turbines to Hornsea II, the world’s largest offshore wind farm to date, and 120 MW to the first offshore wind power plant in Taiwan.

“Those achievements are in line with the strong outlook for global offshore industry due to significant traction in new markets.”

Siemens Gamesa said its financial performance in the third quarter was in line with guidance, and remained confident it would see a boost in the next three months.

Profits at the manufacturer stood at just over £40m, with net debts announced as being almost £137m.

The company said that in the last 12 months it has signed contracted worth over £10.5bn and at the end of June it has an order backlog of more than £19.5bn.

Siemens Gamesa is majority owned by Germany-based Siemens, and was founded following a merger of its wind power business with Spain firm Gamesa.

It is now playing a major role in the Humber region’s emergence as a leading offshore wind hub.

The government recently gave its full backing to the booming industry, as it aims to double the UK’s offshore wind farm capacity in the next decade.

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