Gamesa ended the first half of 2014 with €42 million in net profit, almost twice the 1H13 figure (€22 million). This increase strengthens the growing trend in profitability, with an EBIT margin of 7.7% at constant exchange rates, and in revenues, which increased by 21% at constant exchange rates.
The €71 million reduction in debt in the last twelve months also represents progress towards the sound balance sheet target.
Increase in sales and production
The rising trend in revenues gained strength in the first half of 2014, to €1,262 million, 13.1% higher than in 1H13, supported by the increase in revenues in the wind turbine division (+12%) and in O&M services (+18%). At constant exchange rates, revenues increased by 21% in the period.
In a context of a recovery in global demand, wind turbines sales rose 25% with respect to 1H13, to 1,187 MWe, supported by Gamesa’s sound sales positioning (geographic, product and customer diversification).
This strategy enabled the company to sign orders for an additional 801 MW in 2Q14 (+31%), bringing the order book to 1,913 MW at the end of June, i.e. 24% more year-on-year, ensuring that Gamesa will reach the high end of the sales guidance for 2014 (2,400 MWe). Orders for an additional 393 MW signed in the first weeks of July help improve future growth prospects.
Outlook
The positive order book performance, along with strong sales positioning, the steady improvement in product costs and greater regulatory visibility in key countries provide the assurance of profitable growth in the short, medium and long term.
The entry into the offshore segment via the joint venture with Areva provides Gamesa with an opportunity for complementary growth. Offshore wind installations are expected to account for one-third of the total in Europe in the next five years, reaching 45 GW installed worldwide by 2020.