Gamesa Vs Acciona.

We saw on last posts that Gamesa and Acciona are the Spanish biggest companies in Wind Power. After reading their websites, we downloaded their General Ledger Accounts to analyze them.

These reports are so big (more than one hundred pages) that it doesn’t make sense to make a detailed analysis in this post. Furthermore, Gamesa’s later results published are from 2006 and the Acciona’s are from 2009. So, it is quite hard to compare them. Anyway, let’s see what we can discover.

Gamesa Gamesa’s Results.

On page 6, we see the Short Balance Sheet from years 2006-2005. The first thing we need to pay attention is on the size of their statement. At the end of 2006, the Total Asset is 423.342 K€.

Short Balance Sheet in 2006.

Then, after calculating the percentages of the entries, we can create the Shareholders Equity Statement to have a global vision of the company.

Shareholders Equity Statement

The first thing we appreciate it is the big percentage of the Equity Capital (80,90%). The Current Asset is so big that it covers the Long-Term and Short-Term Debts (this is not very usual). The Gamesa’s creditors can be calm because their loans will be back. Next thing interesting, it is to check their Incomes. In 2006, they earned 91.887€ (page 7) and the year before 5.286€. It is a big step forward.

We could continue this analysis by calculating the percentages in the Income Statement, and checking the evolution from past years. However, those data are so old and world has changed so much from 2006 (for example, it started the global economic crisis) that it is not worthy to study those data.

However, if we continue reading the annual report, we can appreciate some interesting facts. Firstly, Gamesa Coorporation has three important subsidiaries (page 8):

– Gamesa Eolica, S.L. which manufactures Wind Turbines Generators.

– Gamesa Energía, S.A. to develop and sell Wind Farms.

– Gamesa Solar, S.A. which manufactures and sells sun equipments.

And their created other eight subsidiaries in 2006 (page 57) and bought two companies (page 58). This demonstrates their strategy to expand to other countries and markets (page 77) in Spain, US, Europe and China. On the other side, the report shows us their stockholdings in Iberdrola and other companies (page 89).

Anyway, the one million dollar question is: What happened to Gamesa after the financial crisis? We cannot know it with these data, so let’s continue to Acciona’s analysis.

Acciona – Acciona’s Results.

Again, we can analyze their Balance Sheet on page 7.

Short Balance Sheet in 2009.

On this Shareholder Equity Statement, we see the Current Asset covers the Short Term Debts. Acciona looks it has not problems to cope with the short term creditors as well.

Shareholder Equity Statement.

The size of their total asset is 20.532.426 K€. However, this result is 46,61% smaller than the year before. We might remember we are passing a huge economical crisis, and although we cannot conclude this is the reason, my first impression indicates that the crisis is affecting to their assets.

Related to this trend, the incomes dropped from 534.874 K€ in 2008 to 448.22 K€ in 2009 (page 8), and again, we might go into their data in depth to be more accurate on our diagnostics, but the revenue variation could explain this.

On page 14, we read the sectors which Acciona works on; Logistic, Construction, Energy, even Wine production. In addition, as Gamesa does, it has presence on international markets such us, Europe, Australia, North and South America.

Conclusions: Gamesa Vs Acciona.

Although we could not study the balance of Gamesa after 2006, we prove their safe Equity Capital and their interest on Chinese markets. On the other hand, Acciona has wide business fields (logistic, construction, energy) and in spite of suffering the crisis effects, it seems they had still good financial health. How will 2010 be?

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