Siemens Gamesa has reported a net loss of €918m in its fiscal year (FY) 2020 results, compared with €140m in FY 2019.
The company reported a decline in revenues for FY20 of 7% year-on-year to €9,483m.
Siemens Gamesa said the FY 2020 results reflect the continuing slowdown in the Indian market and cost overruns on project execution in Northern Europe, all accentuated by the impact of Covid-19.
Integration and restructuring (I&R) costs amounted to €335m in FY 2020, with the biggest of these amounting to €219m, towards restructuring Siemens Gamesa’s India operations.
Other I&R costs include the €22m integration of the Senvion acquisition.
The global pandemic reduced revenues by around €1bn, due to lower commercial activity and delays in project execution.
In FY 2020 the company achieved a record order intake valued at €14,736m, ending with a backlog of €30.2bn that provides a “solid foundation for the future and reflects the momentum for wind energy”, Siemens Gamesa stated.
Siemens Gamesa said a new management team, led by CEO Andreas Nauen (pictured) who was appointed in June, has been put in place to address these challenges.
The team presented a new business plan for FY21 to FY23 with the goals of turning the onshore business around and of maintaining profitable growth in the offshore and service businesses.
Nauen said: “Siemens Gamesa has started the new fiscal year with strong foundations to return the company to sustainable profitability.
Measures underway will improve performance and enhance our strengths, positioning us for leadership in a wind energy industry that has a very bright future leading the fight against climate change.”
Siemens Gamesa said it remains the “undisputed leader” in the offshore segment, having doubled order intake year-on-year to 4.1GW.
This boosted the backlog to 6.7GW, plus 9.3GW in conditional agreements.
This performance is supported by “technology leadership”, following the launch of the SG 14-222 DD turbine, and a business that is “increasingly diversified”, having added new markets in Asia and the Americas.
The company signed 2.7GW in onshore orders in Q4 2020, partly recovering the business it had lost in the previous quarter and enabling total onshore order intake in FY20 to reach 8.1GW.
Onshore platforms of over 4MW continue to gain importance, having accounted for 45% of onshore order intake in the full year.
Market reception of the SG 5.X platform was “very favourable”, and 1GW in orders have been signed to date.
Service was the fastest-growing division in FY20, supported by the assets acquired from Senvion.
Order intake increased by 53% y/y to €4,152m during the year, boosting the fleet under maintenance to 74,240MW.
Service now accounts for one-half of the company’s total backlog.