EnergyWatch

Siemens books fierce growth in profit margin for wind

The Wind Power and Renewables division at German conglomerate Siemens showed limited revenue growth last year but also major growth opportunities in the future, whereas Denmark's Vestas recently took a hit.

Revenue at Siemens in 2016 came to EUR 5,976 million in its wind power and renewables division. Modest growth of EUR 316 million – 5.6 percent – compared to the previous year. On the other hand, earnings grew much more as the conglomerate's wind business landed a net result of EUR 464 million, up from EUR 160 million in 2015. This constitutes gains of 190 percent and a profit margin of 7.8 percent, according to the group's annual report, which runs till September and from which key figures were published this Thursday morning.

As such, the wind turbine business seems to have grown out of its past problems involving turbine parts. Problems that became exceptionally clear in 2014 when the profit came to a modest EUR 6 million which also caused problems for last year's figures that landed far below the group's own expectations. However, 2016 showed better delivery than anticipated, at least in revenue where the estimate from Siemens is EUR 5 billion.

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