Nordex has disclosed €71m in losses in its results for the first half of this year, due to impacts from the Covid-19 pandemic.
Nordex said the effects of the pandemic became “clearly noticeable” in the operational business during the second quarter.
As a result, earnings before interest, taxes, depreciation and amortisation (EBITDA) fell to a loss of €70.8m, from a gain of €17.1m in the in the first half of 2019, corresponding to an EBITDA margin of -3.5%, compared with 1.7% in the first half of 2019.
The company booked EBITDA of €13.1m in the first quarter so the H1 figures imply a Q2 swing into the red of around €84m. Nordex has not published specific Q2 figures.
Nordex CEO Jose Luis Blanco (pictured) said: “The pandemic significantly affected our company’s operations during the second quarter. Despite this, we were able to manage the situation in close cooperation with our customers and suppliers.
“Therefore, I would like to thank the entire Nordex team and our business partners.
“While processes have normalised or been recalibrated again, the pandemic remains a burden and provides an element of uncertainty. The new credit line supported by the coronavirus guarantee program is protecting us against the effects and remaining uncertainties caused by the Covid-19 pandemic.
“Hence we are confident, that Nordex remains on its growth trajectory even under these circumstances.”
The Nordex announced an application for support from the coronavirus guarantee scheme back in May, which was approved in the past week.
With the guarantee granted by the German federal government and the states of Mecklenburg-West Pomerania and Hamburg, Nordex received a revolving credit facility of €350m to protect the company from the effects on its operating business and “any remaining uncertainties caused by the Covid-19 pandemic”.
Nordex has also already reached a binding agreement to refinance the promissory note due in April 2021.
Together with the €1.2bn guarantee credit facility extended by three years in April 2020, Nordex said it now has a “strong financial structure for the medium term”.
At the end of July, Nordex also agreed the sale of its European project development portfolio to RWE.
The proceeds of around €402.5m (before taxes and fees) expected from the completion of this transaction will strengthen the Company’s balance sheet and support its growth trajectory.
In the projects segment (excluding Service), Nordex Group ended the first half of 2020 with order intake of 2531.9MW, compared with 3038.4MW) in the first half 2019.
Europe accounted for 80% and Latin America for 20%.