Siemens Wind Power and Renewables recorded a 119% increase in profit in the first quarter of the Fiscal Year 2017 compared to the same period a year earlier.
The company’s renewable energy arm ended the first quarter of the current fiscal year with a profit of EUR 111 million, compared to EUR 51 million profit in the first quarter of FY 2016.
The division reported EUR 1.384 billion revenue in the first quarter of FY 2017, a 16% jump compared to EUR 1.197 billion in revenue recorded in the first quarter of FY 2016.
However, the division’s order book marked a 24% drop during the period, going from EUR 1.898 billion in Q1 FY 2016 to EUR 1.436 billion in Q1 FY 2017. The dip in orders was chalked up to a lower volume from large orders.
The large orders received during the period include a EUR 0.7 billion contract for the supply, installation, commissioning and maintenance of 42 SWT-7.0-154 wind turbines for the 309MW Rentel offshore wind farm. The contract marks the first order of Siemens offshore wind turbines in Belgium.
Out of all of its businesses, Siemens pointed out that the revenue growth was most pronounced in the offshore business in Europe. Strong profitability was driven by the revenue increase, higher productivity, positive effects related to project execution, higher capacity utilization, and a larger contribution from the service business, the company said.