Monday, November 29

The announcement of the return to profits in 2022 triggers Siemens Gamesa on the stock market

Siemens Gamesa has risen more than 8 percent in the stock market after announcing in its presentation of results for fiscal year 2021 – closed on October 1 – that expected to return to profit in 2022 and announce that it will be the preferred supplier for Vattenfall for the Norfolk project, located in the United Kingdom, with a total capacity of 3.6 gigawatts.

The wind turbine manufacturer released its figures last Friday at the market close and announced losses of 627 million euros between October 2020 and September 2021, which represents a 31.69 percent reduction in their red numbers.

These losses were due to higher prices for raw materials and transportation, along with higher launch costs for the 5.X platform. Services.

Increase sales

Siemens Gamesa registered sales of 10,198 million euros, 7.5 percent more than in the previous year, driven by growth of 16 percent in the Offshore business units and 9 percent in Services.

Looking to the long term, the company maintains the conviction to turn around the delicate situation in the onshore business and achieve growth above the market average in sales and a margin between 8 and 10 percent during 2024 and 2025 .

Another aspect that the markets have liked is the announcement of a project portfolio of 32,542 million euros, which represents a 7.6 percent year-on-year increase in their orders due to “the good moment for renewable energies,” company sources have indicated.

A project of “enormous dimensions”

Among these projects, the preliminary agreement reached with Vattenfall stands out, which generate clean energy to supply 4 million British households.

Siemens Gamesa would install its new, more powerful SG 14-236 DD offshore wind turbine and would be in charge of project maintenance.

Located between 47 and 72 kilometers off the east coast of England, the Norfolk project consists of two parks, each of 1.8 GW: Norfolk Vanguard and Norfolk Boreas.

This nominated preferred supplier agreement between Siemens Gamesa and Vattenfall is subject to the outcome of the auction award by the British government, scheduled for 2022 and the subsequent final investment decision by Vattenfall.

As stated Marc Becker, CEO of Siemens Gamesa Offshore Business Unit, “Siemens Gamesa and Vattenfall have a very fruitful relationship that has spanned many years and across many markets. With this nominated preferred supplier agreement for Norfolk, we want to add another 3.6 GW to our joint portfolio. “

From underweight to buying the stock

The results presented by the company and the agreement reached with Vattenfall have generated discrepancies among analysts.

Some as Angel Perez Llamazares, of Renta 4, consider that, despite the company’s forecasts, “we continue to be cautious in the value for the medium term. We are going to review our estimates and valuation, and although the value has corrected to levels very close to our target price of 17.52 euros, at the moment We reiterate the recommendation to underweight. “

Contrary to what happened with the analysts of Mirabaud Securities that today they have recommended to buy the value.

So far this year Siemens Gamesa falls 39 percent in the stock market and 15.4 percent of the consensus of analysts consulted by recommends buying it, 53.8 percent keeping it and 30.8 percent selling it.

Place your target price at 24.30 euros from its current price of 20.20 euros and give a potential return to value of 20.3 percent.

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