News Release from Senvion GmbH
Wind Industry Profile of
08/15/2006
REpower achieves considerable growth in first half-year
REpower Systems AG (Prime Standard, WKN 617703) successfully installed 142 wind turbines and increased installed rated power by 116.2% to 267 megawatts in the first half of 2006. Sales increased year-on-year from EUR 121.5 million to EUR 178.5 million. The operating result improved from EUR –12.7 million in the previous year to EUR 2.4 million. There was a considerable improvement in the number of orders during the period, increasing from EUR 502.3 million as of 30 June 2005 to EUR 725.1 million on 30 June 2006. This is the highest number of orders since REpower Systems AG was founded. In light of the high number of orders, REpower anticipates that the strong growth course will continue in 2007 and 2008.
REpower Systems AG successfully installed 142 wind turbines in the first half of 2006, compared to 69 turbines in the previous year. This corresponds to a rated output of 267.0 megawatts compared to 123.5 megawatts in 2005, thus representing an increase of 116.2%. A total of 17 turbines were carried over from 2005 and were largely included in sales for the previous year, depending on the degree to which they had been completed.
Total output was up by 41.9% from EUR 125.8 million to EUR 178.5 million during the reporting period, whereas sales increased by 46.9% year-on-year from EUR 121.5 million to EUR 178.5 million.
EBIT totalled EUR 2.4 million in the first half of the current financial year, compared to EUR -12.7 million in the first half of 2005. Net earnings increased from EUR –8.6 million in the first half of 2005 to EUR 0.9 million.
The order book contained purchase agreements for 430 wind turbines with total rated power of 821.5 megawatts at the end of June 2006. This is the highest number of orders since REpower Systems AG was founded and corresponds to a potential order volume of EUR 725.1 million.
Some projects had to be postponed from the second to the third quarter as the supply of key components, particularly gear systems, rotor blade bearings and hubs, was not carried out in line with contracts. The current bottlenecks may continue into the second half of the year despite secured supply contracts. This is due to a shortage in cast and forged parts, which is affecting the mechanical engineering sector worldwide. However, provided that no more supply delays result from the current component bottlenecks, the forecast for the year as a whole remains achievable (sales of EUR 450 million, EBIT EUR 11 million to EUR 13.5 million).
REpower plans to increase the installation figures to around 325 wind turbines and to increase sales volume to EUR 650 million in the 2007 financial year. A further improvement of the EBIT margin is to be expected.
The projects listed in the order book currently cover the period until the 2008 financial year. In its long-term planning, REpower thus expects the strong growth to continue. From today's perspective, the number of installations will increase to at least 400 turbines with a sales volume of over EUR 800 million in 2008.
"We plan to employ up to 200 new employees in the areas of service, development, production and at our foreign subsidiaries by the end of 2007 in order to be prepared for the future growth," announced Prof. Fritz Vahrenholt, Chairman of the Executive Board of REpower Systems AG.
REpower Systems AG has also announced its plans to establish a joint venture in China. REpower Systems AG, the Chinese steel construction and mechanical engineering company NHIC (North Heavy Industries Corporation, 20,000 employees), which belongs to the NORINCO Group, and the British wind farm developer Honiton Energy Ltd. will be involved in the company "REpower North (China) Ltd." REpower will hold 50.01%, NHIC 33.34% and Honiton 16.65% of shares. REpower North (China) Ltd. will produce 2-megawatt MM70 and MM82 turbines in northern China. The corresponding joint venture contracts are to be signed in China at the end of August.
With the 1.5-megawatt class, REpower has already been present on the Chinese market since 2004, through a licence agreement with Dong Fang Turbine Works (DFSTW). With 7,000 employees, DFSTW from Deyang (Sichuan province) is one of the leading Chinese manufacturers of steam and gas turbines.
REpower Systems AG successfully installed 142 wind turbines in the first half of 2006, compared to 69 turbines in the previous year. This corresponds to a rated output of 267.0 megawatts compared to 123.5 megawatts in 2005, thus representing an increase of 116.2%. A total of 17 turbines were carried over from 2005 and were largely included in sales for the previous year, depending on the degree to which they had been completed.
Total output was up by 41.9% from EUR 125.8 million to EUR 178.5 million during the reporting period, whereas sales increased by 46.9% year-on-year from EUR 121.5 million to EUR 178.5 million.
EBIT totalled EUR 2.4 million in the first half of the current financial year, compared to EUR -12.7 million in the first half of 2005. Net earnings increased from EUR –8.6 million in the first half of 2005 to EUR 0.9 million.
The order book contained purchase agreements for 430 wind turbines with total rated power of 821.5 megawatts at the end of June 2006. This is the highest number of orders since REpower Systems AG was founded and corresponds to a potential order volume of EUR 725.1 million.
Some projects had to be postponed from the second to the third quarter as the supply of key components, particularly gear systems, rotor blade bearings and hubs, was not carried out in line with contracts. The current bottlenecks may continue into the second half of the year despite secured supply contracts. This is due to a shortage in cast and forged parts, which is affecting the mechanical engineering sector worldwide. However, provided that no more supply delays result from the current component bottlenecks, the forecast for the year as a whole remains achievable (sales of EUR 450 million, EBIT EUR 11 million to EUR 13.5 million).
REpower plans to increase the installation figures to around 325 wind turbines and to increase sales volume to EUR 650 million in the 2007 financial year. A further improvement of the EBIT margin is to be expected.
The projects listed in the order book currently cover the period until the 2008 financial year. In its long-term planning, REpower thus expects the strong growth to continue. From today's perspective, the number of installations will increase to at least 400 turbines with a sales volume of over EUR 800 million in 2008.
"We plan to employ up to 200 new employees in the areas of service, development, production and at our foreign subsidiaries by the end of 2007 in order to be prepared for the future growth," announced Prof. Fritz Vahrenholt, Chairman of the Executive Board of REpower Systems AG.
REpower Systems AG has also announced its plans to establish a joint venture in China. REpower Systems AG, the Chinese steel construction and mechanical engineering company NHIC (North Heavy Industries Corporation, 20,000 employees), which belongs to the NORINCO Group, and the British wind farm developer Honiton Energy Ltd. will be involved in the company "REpower North (China) Ltd." REpower will hold 50.01%, NHIC 33.34% and Honiton 16.65% of shares. REpower North (China) Ltd. will produce 2-megawatt MM70 and MM82 turbines in northern China. The corresponding joint venture contracts are to be signed in China at the end of August.
With the 1.5-megawatt class, REpower has already been present on the Chinese market since 2004, through a licence agreement with Dong Fang Turbine Works (DFSTW). With 7,000 employees, DFSTW from Deyang (Sichuan province) is one of the leading Chinese manufacturers of steam and gas turbines.
- Source:
- REpower Systems AG
- Author:
- Daniela Puttenat
- Email:
- d.puttenat@repower.de
All news from Senvion GmbH
