Siemens Gamesa has closed its fiscal-year 2022 with a net loss of €940m.
The group said its performance during the fiscal year, which was wider than the €627m deficit in 2021, reflected “market imbalances caused by persisting supply chain disruptions, heightened by geopolitical tensions and additional waves of COVID-19, as well as upward pressure on the price of inputs and shipping”.
The EBIT pre-PPA and I&R costs loss came in at €581m.
Fiscal year 2022 group revenue was down 4% year-on-year (YoY), on the back of lower turbine revenue (-8% YoY) partially compensated by higher service revenue (+14% YoY).
Siemens Gamesa said cost increases were driven by supply instability and delays in project execution and ramp-up challenges for the 5.X platform, where industrialisation progress has been slower than planned.
Other issues included low turbine manufacturing activity (idle capacity costs and low fix cost absorption), component failures and repairs in legacy onshore turbine platforms and costs associated with the ramp-up of the new SG 11-200 DD.
Siemens Gamesa’s sale of a wind farm development portfolio, value at €565m, improved results for the final quarter of fiscal year 2022, which increased to €375m compared with a loss of €177m in the final quarter of fiscal year 2021.
Based on new assumptions about market, production and project-execution conditions, the backlog of projects for delivery in future years needed to be reassessed, Siemens Gamesa said.
In “this extremely challenging” situation, Siemens Gamesa signed orders for €11.6bn in the last 12 months, boosting the company’s backlog to a record €35bn, a €2.5bn increase YoY.
“Fiscal year 2022 was definitely a very difficult one. But with the launch of the Mistral program, we have set the stage to deliver profitable growth and achieve our long-term vision,” said Siemens Gamesa’s CEO, Jochen Eickholt (pictured).
“Before we get there, we have a transition year ahead of us, still impacted by elevated inflation, supply chain disruptions and geopolitical risks. This is affecting the entire wind industry and could jeopardize the energy transition – unless there is a clear commitment from policymakers and authorities to treat the industry as having the greatest strategic importance.
“Because we are indispensable to society and a crucial pillar of the future energy system.”