Siemens Energy's wind woes prompt German government talks - Windpower Monthly

Siemens Energy’s wind woes prompt German government talks | Windpower Monthly

In a statement published on Thursday 26 October, Siemens Energy said it was in talks with “different stakeholders, including banking partners and the German government… [to] strengthen the balance sheet” in anticipation of stronger growth in its power and gas business areas.

Order intake and revenue at turbine OEM Siemens Gamesa are expected to be lower than market expectations for the 2024 fiscal year, as it is “for the time being not concluding new contracts for certain onshore platforms and applying strict selectivity in the offshore business”. Net losses and cash outflow are expected to be “higher than market forecasts”.

Siemens Gamesa recorded a net loss of €2.5 billion in the third quarter of 2023, as well as loss provisions or termination fees for offshore orders (€400 million) and the cost of ramping up its offshore division (€200 million). It was on course to make losses of €4.5 billion in the 2023 fiscal year.

Quality problems with “certain rotor blades and main bearings” on the company’s 4.X and 5.X onshore turbines were confirmed earlier this year, sparking a sharp decline in the value of shares in parent company Siemens Energy.

In its statement, Siemens Energy said that the budgeting process for 2024 is “still ongoing”. It added that the executive board had made no decisions yet on any specific financing measures.

Siemens Energy shares were down over 30% as news of the government talks broke, plunging from €10.67 on 25 October to €7.20 around 1pm UK time on 26 October.