Gamesa obtains net profit of €198 million in the first half of 2008
July, 29, 2008
- Excluding the gains generated by the sale of the solar unit, net profit increased by 70% to reach €93 million
- Turnover grew by 34% to reach €1.876 billion and gross operating margin rose by 43% to reach €235 million
- 66% of wind turbine generators were sold in international markets
- Gamesa’s portfolio of committed wind turbine generator orders from customers exceeds 11,500 MW, equivalent to more than three years of production
Madrid, July 29, 2008. Gamesa Corporación Tecnológica posted its results for the first half of 2008 this morning. During these six months, the company culminated the process of focusing its business on the manufacture of wind turbine generators with high technological added value, in the wake of the sale of Gamesa Solar and the alliance with Iberdrola Renovables aimed at creating a market leader in the promotion and generation of wind energy in Europe. These results consolidate the sustained and profitable growth model, which is backed by customers and suppliers, and are a further step forward in meeting the growth, profitability and financial robustness objectives laid down in the 2006-2008 Business Plan.
Gamesa’s sales increased by 34% compared to the same period in 2007 to reach €1.876 billion. EBITDA reached €235 million, a 43% increase on the first six months of 2007. For its part, net profit obtained from the joint contribution made by its manufacturing and wind farm development and sale activities amounted to €93 million, a 70% year-on-year increase when compared to the first half of 2007. The contribution made by the extraordinary gains made on the sale of the solar unit situated consolidated net profit at €198 million. Return on Capital Employed (ROCE) amounted to 17% and Net Financial Debt fell to 0.2 times EBITDA, thereby consolidating the company’s financial robustness.
The biggest agreement ever in the history of the wind sector
In the first half of 2008, Gamesa increased its portfolio of wind turbine generator orders by 40% when compared to the end of 2007. These now exceed 11,500 MW, committed to strategic key accounts in its main markets: Europe, the United States and China. This amount is equivalent to more than three years of current production capacity.
It is worth highlighting the largest ever sale of wind turbine generators in the history of the wind energy sector among the new commitments taken on in the first half of the year. This agreement, reached in the month of June by Gamesa and Iberdrola Renovables, amounts to a total power of 4,500 MW. Deliveries will be made between 2010 and 2012 and will be destined to wind power promotions in Spain, the rest of Europe, the United States and Mexico.
Similarly, Gamesa will supply Longyuan with 344 MW of wind turbine generators thanks to a new agreement signed in another of its key markets, China.
The agreement with Longyuan comes on top of other new contracts signed with key strategic accounts for the delivery of wind turbine generators to wind farms located in the Spanish, Italian, Tunisian and American markets. The future delivery of 288 MW of wind turbine generators to ENEL, awarded through a public tender, for delivery between 2009 and 2001 to wind farms in Italy and Spain should be added to all this.
In the first six months of 2008, Gamesa's wind turbine generator manufacturing unit sold 23% more equivalent megawatts, 1,848 MW compared to the 1,497 MW sold in the first half of 2007. Sixty-six per cent of this total was sold in international markets. The 2 MW wind turbine generators continue to consolidate and now constitute 73% of the machines sold.
Consolidating the production pace
Improved use of new capacity in China and the United States (eight manufacturing centers), together with worldwide development of the supplier base, allow Gamesa to consolidate its production pace at 3,600 MW per year, two times more than in 2005.
Furthermore, Gamesa culminated the start-up of its integrated production center in Tianjin, China, where it has implemented a high-performing synchronous manufacturing system that will lead to reduced inventory and lead times as well as continuous improvement in total quality and productivity. This system, once fully operational in China, will be extended to other installations throughout the world.
New strategy at the wind farm unit
The Wind Farm Promotion & Sales Unit delivered 269 MW, 20% more than in the same period of 2007. Moreover, it started-up 400 MW of newly constructed wind farms.
In 2008, Gamesa was the first foreign firm in China to obtain official approval to measure wind resource, and in June Gamesa also received approval to construct a 49 MW wind farm at Taipingshan, in the province of Shadong.
Finally, on June 13, Gamesa signed a strategic agreement with Iberdrola Renovables for the joint development of wind farms in Spain and the rest of continental Europe, allowing consolidation of a worldwide leader in wind energy promotion and management.
Gamesa: world leader of "made in Spain" technology
Gamesa exports the “made in Spain” label as a reference for quality and technology. It was one of the six companies chosen by the US Department of Energy to contribute with its knowledge to wind energy development in the USA (“20% WIND ENERGY STRATEGY” Memorandum of Understanding ), in addition to being a driving force behind and key partner of the Rendell Administration in the development of a Pennsylvania Wind Energy Supply Chain.
The Energy Culture is also profitable
Gamesa’s business model, which can be summed up by the "Energy Culture" concept, offers social, economic and energy sustainability solutions and it has been acknowledged as such:
- Tianjin Advanced Enterprises with Foreign Investment Award, granted to Gamesa from among more than 200 companies in China
- Imex-Fortis Award 2008 for the Internationalization of Spanish Businesses
- Eleanor Roosevelt Human Rights Award 2008 in recognition for the workers’ protection in the USA.
Furthermore, such recognition has also been reflected by the company’s own shareholders, who have positioned Gamesa among the five IBEX-35 companies having the best stock market evolution in the first six months of the year, despite the volatility the market has suffered in this period.
About Gamesa
Gamesa is a company specializing in sustainable energy technologies, mainly wind power. Gamesa is the market leader in Spain and is positioned among the most important wind generator manufacturers in the world with a market share above 15% in 2007.
Gamesa has installed over 13,000 MW of its main product lines in 20 countries spread out over four continents. The annual equivalent of this production amounts to more than 2.78 million tons of petroleum (TEP)/year and prevents the emission into the atmosphere of more than 20.6 million tons of CO2/year.
The company has 32 production centers located in Spain, China and the United States with an international workforce of around 7,000 employees.