Gamesa ends 2007 with sales growth of 36% and net profit of €220 million
Gamesa ends 2007 with sales growth of 36% and net profit of €220 million
- Turnover grew by 36% while EBITDA reached €468 million, 14% higher than the figure for 2006.
- The wind generator manufacturing unit entered into agreements with leading customers in the wind power market for a contract portfolio of over 8,000 MW, equivalent to Gamesa’s production capacity for the next two years.
- The portfolio of wind farms in promotion exceeded 21,000 MW and 715 MW of wind farms promoted by Gamesa were started up, 63% more than in the preceding financial year.
- Production rose during 2007 in more than 1,000 MW, which means an increase of 46% over the same figure in 2006, reaching an annual production pace of 3,600 MW in the last quarter.
Gamesa Corporación Tecnológica ended FY 2007, moving forward within its sustainable and profitable growth model as targeted in the 2006-2008 Business Plan. Sales increased dramatically by 36% for the second year running to reach €3.274 billion. EBITDA rose by 14% compared to the previous financial year to reach €468 million. Gamesa’s Return on Capital Employed (ROCE) amounted to 16%, and improved its financial robustness, while the Net Financial Debt/EBITDA ratio decreased to 0.5 times in 2007. Net profits amounted to €220 million. Of total EBITDA 78% were obtained from the wind generator business unit, 17% from promotion and sale of wind farms, and the remaining 5% from the solar business unit.
Gamesa’s internationalization as the key to growth
Gamesa’s international growth has been based on maintaining its position of leadership in Spain, the United States and China, the three countries in the world having the greatest installed power in 2007. These are precisely the countries where Gamesa has 32 production centers, nine of which were started up in the last 18 months (four in the US, three in China and two in Spain). This expansion entails job creation. The company’s workforce grew from 5,500 in December 2006 to almost 7,000 at the end of 2007, 30% of which were outside Spain.
The progressive increases in capacity in the USA and China resulted in a 1,000 MW increase which means 46% more in just the last year. The annual production capacity by December 2007 was 3,600 MW.
Production capacity fully committed for the next two and a half years
Gamesa’s product range reinforces its positioning in the wind power market. Seventy-three per cent of the wind generators supplied in 2007 were G8x wind generators (2 MW) and 27% were from the G5x range (850 KW). This is precisely the same trend that can be seen in the market, a movement towards multi-megawatt machines as opposed to machines of less than 1 MW. Together, these two product segments currently cover 80% of world wind generator demand.
Thanks to its policy of focusing on key accounts, Gamesa ended the last financial year with a portfolio of signed commitments of over 8,000 MW, equivalent to two times annual production capacity by the end of 2007.
New monthly MW record delivered in November, 2007
Over the past year, the wind generator business unit delivered 2,919 MW to customers, 22% more than in 2006. It surpassed its own installation record for the second year running when it installed 505 MW last November. Wind generator sales grew by 46% from €1.922 billion in 2006 to €2.800 billion last year. For its part, EBITDA amounted to €393 million, 21% more when compared to the same period last year.
As regards the MW sold in the preceding year, the contribution made by the US and Chinese markets in 2007 rose by 7%. Europe accounted for 57% of the total figure (44% in Spain alone), the USA 23%, China 15% and Gamesa's other emerging markets the remaining 5%.
MW start-up record for wind farms promoted by Gamesa
The Wind Farm Promotion and Sales unit for its part maintained a dynamic portfolio in 2007 that reached 21,100 MW under promotion, of which 5,857 MW were already validated. Of these, 94% were in the USA, China and Europe (21% outside Spain). More than 2.100 MW are currently committed to strategic customers in Europe and the USA for the next two years.
The company has managed to increase the number of MW started up by 63%, from 438 MW in 2006 to 715 MW last year. Europe accounted for 58% of these, the USA 36% and the other markets 6%. Likewise, firm sales amounted to 560 MW in 2007, an increase of 17% on the preceding year. Of the 560 MW sold last year, 42% were sold in Spain, 25% in the USA, 12 % in Italy, 17% in Germany and 2% in France and Portugal, respectively.
The Wind Farm Promotion and Sales unit increased sales by 22% when compared to 2006 to reach €576 million. EBITDA fell by 12% to reach €88 million.
The solar unit multiplies MW built by six
Lastly, Gamesa's Solar Power Unit maintained the contract pace in an uncertain regulatory environment in Spain. Thanks to focusing on execution and customer delivery, the number of MW built increased six times to reach 26 MWp at the end of the year.
The business unit’s sales reached €207 million, an increase of 63% when compared to 2006. A similar increase can be seen in EBITDA, which amounted to €26 million, a difference of 68% when compared to 2006.
Outlook for 2008
There are good prospects for growth in Gamesa's three strategic markets, China, USA and Europe. The contribution made by the American and Asian market will increase, while Europe will keep its leadership position. The achievements of 2007 have provided us with contractual visibility over the coming two years as regards wind generators and wind farms.
Concerning technology differentiation, Gamesa will carry on investing more than 1% of its turnover in R&D&i. Once the design of its components is validated, it is expected that the first prototype of the Gamesa G10x 4.5 MW wind generator will be assembled in 2008. Manufacturing should begin in 2010.
Gamesa: A sustainable point of reference in a global market with the wind in its sails
Gamesa was honored with several awards in 2007. At Iberdrola's Supplier of the Year Awards, Gamesa won two prizes in the Corporate Social Responsibility and the Equipment and Materials Manufacturer (Large Corporations) categories. For its part, the International Technology Forum chose Gamesa as one of the 20 companies to be presented to American investors after it was granted the “2007 Excellence Leadership Awards: Energy”. The company likewise continued to remain in the FTSE4GOOD index and was included within the exclusive Dow Jones Sustainability Indexes (DJSI), which include the world’s leading firms as regards their sustainability practices.
The wind power industry continues to grow. More than 20,000 MW were installed around the world in 2007. The three countries in which Gamesa has production centers occupied the top three positions of the ranking: United States (5,244 MW), Spain (3,522 MW) and China (3,449 MW), where growth amounted to 156%. At the end of the year, total installed capacity around the world reached 94,000 MW, an increase of 30% when compared to 2006. Global turnover amounted to €25 billion.
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