Senvion takes onshore hit
Stronger performance reported in offshore, service businesses
Revenue at Senvion fell to €829.6m in the first half of 2017, compared with €869.5m in the same period of last year.
The drop was mainly down to a reduction in revenue from the company’s onshore business, which was down to €490.8m in the first six months of 2017 from €655.4m last year.
Onshore revenue fell in its core home market of Germany and also in the UK, Canada, Portugal and Belgium, compared with last year. Improved figures were reported in France, Italy and Norway.
Revenue from Senvion’s offshore activities increased to €184.3m from €75m in 2016. The company’s service and maintenance unit also improved slightly, with revenue of €174m this year, up from €173.3 last year.
The increased revenue from offshore wind was mainly related to activities at the Nordegrunde and Nordsee 1 offshore wind farms in Germany, Senvion said.
Senvion’s adjusted earnings before income tax, depreciation and amortisation (EBITDA) was also down from January to the end of June at €61.8m from €72.3m in the same period of 2016.
Senvion received onshore orders totalling 677MW in the first half of the year, worth about €633m.
The onshore order backlog now stands at 1.745GW, of which 31% is in the UK, 27% in Germany and 21% in France.
Offshore orders in the period were 203MW, with an order backlog of 645MW.
The company initiated a programme in March to reduce costs, which will see a loss of about 660 jobs.
Senvion said a total of 65 jobs have been lost as of the end of June, of which two-thirds were in Germany and the remainder in other locations.
Restructuring expenses in the first half of the year were €52m. Some €34.4m went to employee termination benefits, €7.8m to legal and consulting costs and the rest operating to expenses for repayments of government grants and write-offs of inventories.
Senvion chief executive Jurgen Geissinger said the company’s performance in the first half of the year was in “line with our expectations”.
He said Senvion “continues to face a challenging environment” but remains “on track”.