One day after the German Government announced a rescue package in which the Spanish administration would also participate, Siemens Energy confirm some Record negative results related to 4.588 million eurosin front 712 million red Because of the problems he experienced a year ago turbines of the Spanish subsidiary, Siemens Gamesa. The company doesn’t expect to break even on its accounts so far fiscal year 2026.
The problem arose in the middle In June of this year when the company detects an increase in malfunctions in some cases We produced wind turbines. As the company announced in August, limited number of turbines There were problems with “certain rotor blades and bearings” of certain platforms on the ground (4.X and 5.X). A few months later the technical analysis is almost complete and according to the company, The results confirm that announced in augustIt was announced that the loss would be 4.5 billion euros at the end of the year. It was then added that the biggest impact on the accounts is expected in the next years, 2024 and 2025.
The company has a series of “corrective measures and we are improving mitigation actions”. Moreover, Business activities are suspended Details of how and when the 5.X platform will be resumed with a design that “includes the necessary corrective measures” are described. Additionally, “the scope of all of Siemens Gamesa’s activities is currently being reviewed to turn the tide and return to profitability.” Details will be announced at the ‘Capital Market Day’ to be held in the coming days. 21 November.
Beyond the wind work, Gas Services, Grid Technologies and Industry Transformation they surpassed themselves sales forecasts for fiscal year 2023 and achieved profit margins before or above predictions in special online games. “In a year full of unprecedented challenges, Siemens Energy has shown that it can turn things around, with all businesses other than wind meeting or exceeding their targets for the year. We are also seeing progress in resolving Siemens Gamesa’s problems, with onshore turbines installed confirming the results we announced earlier.” Maintaining a solid balance sheet remains an absolute priority,” said the company’s chairman and CEO. Christian Bruch.
public rescue plan
The German Government agreed to provide guarantees 7.5 billion euros 11 billion Euros of the total guarantee amounting to 12 billion Euros will be provided to Siemens Energy through the consortium of banks. In return, the federal government will receive a market-standard payment from Siemens Energy. The remaining €1 billion will be provided by an additional consortium led by Deutsche Bank.
With this agreement, Siemens Energy’s order growth in key projects for the energy transition can now be secured in the long term and the risks of the relevant parties can be reduced. Siemens Energy’s current order book is as follows: 112,000 million euros. Due to the long duration of projects in the energy sector, advance payment guarantee, finality guarantee or warranty deed are widely used tools in the sector. These guarantees are given by banks in exchange for a commission, and the guarantee usually varies between 5% and 25% of the order value.
Additionally, Siemens Energy will sell 18% of its shares in Siemens Limited (SIL) in India to Siemens AG. When Siemens Energy AG was founded in 2020, SIL had not yet been separated for administrative reasons. Today, 24 percent of the company belongs to Siemens Energy and 51 percent to Siemens AG. This partial sale is the first step in the planned and now accelerated separation of Siemens Energy and Siemens AG in India. This sale will have no impact on Siemens Energy’s operations in India, which will continue as before. India remains a strategic market for the company.