Page 6 - AfrElecl Week 30
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AfrElec PERFORMANCE AfrElec
COVID and project difficulties keep
Siemens Gamesa in the red
GLOBAL SIEMENS Gamesa saw the coronavirus we have presented today reflect that. Neverthe-
(COVID-19) cause EUR93mn ($109mn) of less, we are already taking measures to turn the
losses between April and June, while the com- Onshore business around and return to profita-
pany also blamed market slowdowns in India bility. The long-term outlook for our business is
and Mexico and onshore project challenges in promising and our company has the technology
Northern Europe. The company said in an earn- and people needed to play a major role in devel-
ings note that revenues reached EUR2.411bn oping a recovery underpinned by clean energies
($2.8bn), down 8% year on year. that help combat the effects of climate change,”
EBIT pre PPA and before integration and said CEO Andreas Nauen.
restructuring (I&R) costs fell to -EUR161mn Meanwhile, the company said it had a
(-$189mn), with a negative EBIT margin of stronger future despite the losses expected this
-6.7%, including a -EUR93mn (-$109mn) direct year. It enjoyed good liquidity, with EUR4bn
impact of COVID-19. ($4.7bn) in funding lines, against which only
Meanwhile, total net losses in the quarter EUR1.2bn ($1.4bn)has been drawn. The com-
amounted to EUR466mn ($547mn). pany’s debt has been reduced by EUR101mn in
For the nine months to June, revenues fell 9% the last year to EUR90mn ($105mn).
year-on-year to EUR6.615bn ($7.8bn), while net Crucially, the company issues financial guid-
losses amounted to EUR805mn ($946mn). ance for the full year to September 2020, after not
However, the company pointed to its order- giving such guidance in its last quarterly earn-
book and strong performance by the Offshore ings report. It now expects to end the year with
and Service units, where the order backlog EUR9.5-10bn ($11.1-11.7bn) in revenues and
reached a record EUR31.5bn ($37bn). an EBIT margin before PPA and integration and
Order intake increased by 14% in the quar- restructuring costs of between -3% and -1%. This
ter to EUR5.342bn ($6.3bn), and by 24% the last represents a reduction of EUR1bn ($1.17bn) in
twelve months to EUR15.248bn ($17.8bn). revenues and of between EUR200-250mn ($235-
“We are navigating a complicated period, as 293mn) in profitability compared to the previous
an industry and as a company, and the numbers guidance.
FUELS
Nigeria’s $2bn new urea plant
due online in 2020: Saipem
NIGERIA PRODUCTION will start at Nigerian conglom- including providing dedicated flights for ven-
erate Dangote’s $2bn fertiliser plant in Lagos this dors and suppliers.
year, Italian contractor Saipem has confirmed to A Dangote official also confirmed in June
Bloomberg. that the plant would be in operation by year-end,
The facility will use gas supplies from Nigeria although traders have warned that commercial
Gas Co. and Chevron Nigeria as its feedstock to output might not start until as late as the second
produce 3mn tonnes per year (tpy) of urea and quarter.
ammonia. This makes it the largest plant of its Nigeria already has two urea plants in opera-
kind in the world. tion – the 1.4mn tpy Indorama unit at Port Har-
Test runs began at the facility in March, court and the 500,000 tpy Notore facility at the
although the coronavirus (COVID-19) pan- port of Onne. A second 1.6mn tpy train is slated
demic led to disruptions,” Saipem’s chief operat- to start production at the Indorama facility in
ing officer Maurizio Coratella said. December.
“Train two commissioning and testing will By expanding its urea production, Nigeria
start soon, as such activities will be overlapped hopes to help develop its agricultural sector and
with train one,” he said. “The project is planned feed its growing population. The sector has stag-
for completion within the end of 2020, with train nated in recent decades, overshadowed by the
one starting production within weeks and train country’s oil industry. Nigeria is also on a drive
two following soon after.” to utilise more of its gas reserves, having declared
Saipem is making special arrangements to 2020 to be the “Year of Gas.”
make sure deadlines are met, the CEO said,
P6 www. NEWSBASE .com Week 30 30•July•2020
