German Government, Siemens Gamesa and a consortium of banks agreed to rescue Siemens Energy for 15,000 million euros; The Spanish Manager also agreed to participate in this with a series of bank guarantees. The group has many problems in its wind turbine production division. The company has 5,000 employees directly in Spain, mainly in the Basque Country and Navarra. SpecialThe German Government will guarantee the company 7.5 billion eurosThis is part of lines totaling €15,000 million agreed with private banks and other interested parties.
German Manager assumes previous solution As reported in a statement by the Ministry of Economy, in exchange for other actors agreeing to contribute funds. Hours after this announcement, the Spanish Ministry of Industry announced that it was working on “a possible bank guarantee for new contracts abroad” for the company. This line will be covered by the Spanish Export Credit Insurance Company (Cesce).
“This is an important company and should play an important role in energy sovereignty, so, We need to sit down and analyze all the possibilities before taking drastic measures. This is what the EU renewable energy regulation will offer us, says the Ministry of Industry.
In recent weeks, The German Government had intensive contacts with Siemens Energy, the main shareholder of this company, and private banks.. The government’s prerequisite was that all stakeholders were adequately involved in protecting the company. The rescue announcement came hours before the company confirmed millions of dollars in losses that would herald a serious adjustment plan to be announced next Monday.
For this reason, The agreement to secure the necessary guarantee limits totaling €15 billion now enables private banks to provide grants to Siemens Energy a guarantee line totaling €12,000 million. According to the Europa Press agency, Siemens Energy will receive an additional 3 billion euros in negotiations with other interested parties.
Of the €12 billion given by private banks to Siemens Energy, the German Government provides a proportional guarantee of €7.5 billion for the €11 billion guarantee limit; A banking consortium undertakes 3.5 billion euros of the guarantee limit within the scope of its own commitment.
Moreover, Private banks also assume responsibility for a guarantee limit of €1,000 million without a guarantee from the federal governmentIt was secured by the first tranche of losses from Siemens AG. In case of damage, the first slice of loss has priority. Additionally, Siemens Enerji and Siemens plan to negotiate the sale of shares in a joint venture that will provide Siemens Enerji with a cash inflow of approximately 2 billion euros.
Ban, dividends and bonuses
Same way, The usual ban on dividends and bonuses for the board of directors applies. This agreement is subject to the successful completion of the necessary review processes by the Federal Government, the participation of the German Bundestag and the approval of Siemens Energy and Siemens’ relevant institutions and organizations.
Siemens Energy, which will present its financial year results this Wednesday, Last August, it announced a net attributable loss of 3 billion 632 million euros in the first nine months of its financial year (between October and June).This represented a fivefold increase from the ‘red figures’ of €711 million recorded in the same period last year, which was due to start-up problems at Siemens Gamesa.
The company is suffering from a significant increase in failures of wind turbine parts produced by GamesaThe bulk of the estimated repair costs are expected to be incurred for fiscal years 2024 and 2025, while taking into account expected costs together with future expense charges of €2.2 billion, including €1.6 billion related to quality issues on some land platforms. The company, owned by Siemens, has already worsened its expected net loss figure for this year, approaching 4.5 billion euros.