Siemens Gamesa has confirmed its return to profit, reporting EBIT before PPA amortisation and integration and restructuring costs of €121m in the three months to 31 December 2020.
In the comparable quarter last year, the turbine firm reported a loss of €136m.
The latest figures imply a margin of 5.3% of revenue, benefiting from the product portfolio and productivity gains in the quarter.
Profitability also reflects the effect of turnaround actions, the board said.
Net income attributable to SGRE shareholders amounted to €11m in Q1 FY21.
Revenue increased by 15% year-on-year in the first quarter to €2,295m, driven by strong sales performance by both offshore and service.
It was, however, also affected negatively by currency depreciation.
Excluding this impact, the directors said revenue would have increased by 21%, to €2,427m.
Onshore sales continue to be affected by some delays in project execution as a result of restrictions on the movement of people and goods due to the COVID-19 pandemic.
This impact, however, was lower than in the previous fiscal year, and the board expects it to tail off over the coming quarters as the vaccine is rolled out.
Reported revenue growth and the positive EBIT margin pre PPA and before I&R support the guidance for fiscal year 2021, announced in November 2020.
Then revenues between €10,200m and €11,200m were reported and an EBIT margin before PPA and I&R costs between 3% and 5%.
Siemens Gamesa’s balance sheet in the first quarter of FY21 is reflected in the financial position, with €4.4bn in committed funding lines, against which the company had drawn around €1.3bn, and total liquidity in the amount of c. €4.6bn including the cash position.
Net debt stood at €476m at the end of December.
Siemens Gamesa’s chief executive Andreas Nauen said: “Our performance in the first quarter shows our commitment to prioritising profitability (over volume), cash flow and sustainability, which are the levers of our strategy to put the company back on track to sustainable profitability.
“At the same time, our performance shows that Siemens Gamesa occupies a leading position in driving the transition towards non-polluting energies.”