Spanish-based engineering company Siemens Gamesa Renewable Energy (SGRE) closed the fiscal year ended September 30 with double-digit growth (+10.9%) in offshore unit due to new markets, mainly Taiwan, which contributed 1.5 GW in firm orders.
Meanwhile, Service orders increased by 13.4% in FY 2019, to €2,715m. This business unit, which contributes with very profitable contracts, accounts for 47% of the company's order book.
Wind power has strong potential and significant growth opportunities in the long-term. According to the International Energy Agency, average annual wind installations will practically double by 2040, with €5 trillion of investment by 2050.
The order backlog at Siemens Gamesa rose 12% year-on-year to €25.5bn as its order intake grew by 7.4% to €12.7bn. Revenue grew to €10,227m, while the company doubled its net income to €140m compared to FY 2018. The company is focused on increasing profitability and competitiveness in a complex environment for wind turbines.
"There is no question that wind energy is coming of age and is now leading the energy transformation which is so critical to tackling climate change,” said Markus Tacke, CEO of Siemens Gamesa.
The company is well placed to benefit from this growth because of its lead in the offshore segment and its strong footprint in the onshore segment in emerging markets.