Page 6 - AsiaElec Week 31

AsiaElec PERFORMANCE AsiaElec

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. ™

GAS-FIRED GENERATION

Bangladeshi LNG-fired

power plant secures loan

BANGLADESH JAPANESE energy giant JERA and India’s Reli- project.
ance Power have secured a $642mn loan for their “We are delighted to achieve financing tie-up
planned liquefied natural gas (LNG) fired ther- for this landmark project, which is the largest
mal power plant (TPP) in Bangladesh. foreign direct investment [FDI] and the largest
JERA said on July 31 that the loan, which has IPP [independent power producer] in Bangla-
come from a group of banks led by Japan Bank desh, with a consortium of banks led by JBIC. It
for International Cooperation (JBIC), repre- represents one of the largest funding tie-ups for
sented the project’s final major contract and that a project in Bangladesh’s power sector,” Reliance
the pair would now focus on full-scale construc- Power chairman Anil Ambani said.
tion. JERA said it aimed to begin commercial The TPP – being developed under a build,
operations at the 745-MW power plant in 2022. own and operate (BOO) model – will be
The banking consortium also includes the located about 40 km south-east of Dhaka in the
Asian Development Bank (ADB) and Japanese Naranganj District. The plant will sell its power
banks Mizuho Bank, Sumitomo Mitsui Banking output under a 22-year supply contract with
and MUFG. Japan’s public sector Nippon Export Bangladesh Power Development Board (BPDB).
and Investment Insurance will guarantee pri- Global engineering solutions provider
vate-sector loans as well as JERA’s stake in the GE announced on July 30 that the project’s

P6 www. NEWSBASE .com Week 31 05•August•2020