3W Power/AEG Power Solutions Reports Strong Performance in Q3/2011
Thursday, Nov 17, 2020

3W Power S.A., the holding company of AEG Power Solutions (AEG PS), today announced its financial results for the third quarter ended September 30, 2020. The Group revenue for the quarter was 56.0% higher than in the same period in 2010, reaching €109.2 million (2010: €70.0 million). The revenue growth for the quarter was generated by both company business segments: revenue at Renewable Energy Solutions (RES) increased to €62.1 million (2010: €29.4 million) while revenue at Energy Efficiency Solutions (EES) rose to €47.1 million (2010: €40.6 million).

“We are very pleased with our performance during the third quarter 2011. Based on our global go-to market strategy for renewable energy solutions and our technical leadership in power controllers, we successfully continued to drive growth, despite market weaknesses in certain Western European countries”, comments Horst J. Kayser, CEO of AEG Power Solutions. “With our combination of competence in industrial power electronics and experience in the renewable space, we contribute to a sustained, secure and efficient energy supply for the future.”

Incoming orders in the third quarter of 2011 were €102.9 million, up 14.7% on the third quarter of 2010. Adjusted EBIT in Q3 was €15.2 million (13.9% of revenue) compared to €1.4 million (2.0% of revenue) in the same period in 2010.

RES segment

Q3 order growth was particularly strong in the Renewable Energy Solutions (RES) segment as orders for the quarter were €55.8 million, up 66.1% on the third quarter of 2010. The growth is driven by demand within the solar value chain, from the upstream manufacturing of polysilicon (power controllers) to the downstream installation of solar power generation plants (solar inverter solutions). EBITDA for RES rose to €19.9 million (2010: € 7.6 million) and was 32.0% of revenue (2010: 25.9%).

RES continued to invest in its key product lines demonstrating commitment to innovation and confidence in the long-term fundamentals of the renewable space. In September 2011, AEG PS announced a new frame agreement with GT Advanced Technologies for the supply of Thyrobox MTM-systems. These systems offer significant advantages to polysilicon manufacturers in terms of higher energy density and efficiency, lower footprint and advanced process monitoring capability.

In October 2011, a new 400 MW solar inverter facility was officially opened in India, offering opportunities to strengthen customer relationships and improve competitiveness in the expanding renewable market in this region. In the last nine months in India, AEG PS has been awarded 39 MW of total solution solar projects while monitoring systems from skytron have been ordered for installation on 45 MW of solar capacity.

Also in Q3, AEG PS acquired the outstanding 25% of skytron, after buying a majority stake last year.

EES segment

In the Energy Efficiency Solutions segment (EES) orders in Q3 were €47.1 million, 16% lower than in the same period in 2010 as order growth in the industrial UPS product line was offset by softer demand in the telecom systems and converter product lines. Orders in the last nine months were €160.3 million, 2% higher than in the same period in 2010 (€157.1 million).

In the third quarter EES recorded positive EBITDA of €1.7 million, reversing negative EBITDA of €1.4 million in the third quarter 2010. Cost reduction and standardization programs as part of Agenda 2012 are in place and are yielding benefits which are expected to accelerate in Q4 and beyond.

Market environment and outlook

  • For 2011, AEG Power Solutions expects outstanding growth y-o-y in the RES segment, with revenues in the solar inverter business almost tripling compared to 2010 given its strong project pipeline. The Group also continues to expect double digit growth of the global solar inverter market after the transition year in 2011. AEG PS is confident revenue growth will continue in this industry environment by reinforcing its presence in emerging markets and by focusing on the utility scale and large commercial segments.
  • Furthermore, despite current uncertainties in the global market of polysilicon manufacturing AEG PS power controllers continue to be well positioned. Current orders and continuing business development efforts will drive the achievement of 2011 targets.
  • For the EES segment, current orders and historic seasonality suggest that the last quarter of 2011 will be its strongest of the year in terms of sales. Agenda 2012 actions will continue to lead to improved EBITDA expectations for this segment.
  • Agenda 2012, which sets operating and financial objectives for RES and EES, is on course to reach an increased annual revenue target of above €420 million in 2011. With year-to-date growth in revenue coupled with ongoing Agenda 2012 improvements, the Group expects significantly improved profitability over 2010 and anticipates double-digit EBITDA margin for this year.

    Source: Business Wire
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