COVID-19 hits Siemens Gamesa's 1st quarter profits

- The company's revenue also falls 8% between January and March

One of the world's largest wind turbine manufacturers, Siemens Gamesa, announced Wednesday that the COVID-19 pandemic had a direct impact of €56 million on the company's profitability between January and March of 2020.

The performance during that period reflected the 'unexpected effect' of the COVID-19 pandemic on Siemens Gamesa's operations and commercial activity, according to the company.

'This complicated situation further intensified the challenges in the onshore business, mainly in the Indian market and the execution of projects in Northern Europe,' the statement read.

The company's revenues also fell by 8% between January and March, to €2,204 million, affected by lower sales of wind turbine generators.

- Long-term prospects remain sound

The company, however, noted the long-term prospects for the industry in general and Siemens Gamesa remain sound with the company registering a record order backlog of €28.6 billion, marking a 21% year-on-year increase during the period.

It added that the company is well positioned to take advantage of sector growth outlook thanks to its geographical diversification and leadership in technology.

According to the International Energy Agency, renewables will account for two-thirds of total capacity installed by 2040, with a sustained level of installations averaging 57 gigawatts per year.

“We are experiencing a situation without precedent that has changed our lives in just weeks. Siemens Gamesa considers that the renewables industry must play a key role in the economic recovery to move towards a sustainable energy model that generates quality jobs. It is in our hands to avoid another crisis: the climate crisis,” Markus Tacke, CEO of Siemens Gamesa, was quoted as saying.

By Ebru Sengul Cevrioglu

Anadolu Agency

energy@aa.com.tr