Germany, Siemens Gamesa, and a banking consortium agreed on a rescue package for Siemens Energy totaling 15 billion euros. The Spanish manager also joined with a sequence of guarantees. The wind turbine division has faced substantial challenges, and Siemens Energy directly employs around 5,000 people in Spain, concentrated mainly in the Basque Country and Navarre. A guarantee from the German government for 7.5 billion euros forms part of the overall 15 billion euro line arranged with private banks and other interested parties.
The German government is advancing a previously announced solution. In a ministry statement, Berlin noted that other participants would contribute capital as part of the package. Shortly after this disclosure, Spain’s Ministry of Industry indicated it was exploring a potential bank guarantee for new overseas contracts for Siemens Energy, to be covered by Cesce, the Spanish export credit insurer.
Industry officials stressed that Siemens Energy plays a pivotal role in energy sovereignty and that all options should be carefully evaluated before any drastic measures are taken. The EU renewable energy framework would help shape such an assessment, according to the ministry.
In the weeks ahead, the German government held intensive discussions with Siemens Energy, the principal shareholder, and with private lenders. The government insisted that every stakeholder be properly engaged in preserving the company. The rescue plan was announced just hours before Siemens Energy projected substantial losses that would necessitate a comprehensive adjustment strategy to be unveiled soon.
The agreed mechanism enables private banks to provide a credit line of twelve billion euros to Siemens Energy, backed by a government guarantee of seven and a half billion euros. Reports from Europa Press note that negotiations with other interested parties could add an additional three billion euros to the total package.
Within the twelve billion euro private bank contribution, the German government will guarantee seven and a half billion euros for the eleven billion euro guarantee envelope. A separate banking consortium will cover three and a half billion euros of the guarantee under its own commitments.
Additionally, private banks have undertaken to cover one billion euros in a guarantee tranche without a federal government guarantee. This tranche is secured by the first loss layer for Siemens AG. In the event of damage, this first loss share would take priority. Siemens Energy and Siemens also plan to pursue the sale of shares in a joint venture that could bring in approximately two billion euros in cash flow.
Ban, dividends and bonuses
As part of the agreement, the typical ban on dividends and bonuses for the board remains in place until the necessary supervisory reviews are completed. The arrangement will proceed only after the German federal government, the Bundestag, and Siemens Energy along with relevant Siemens bodies approve the terms.
Siemens Energy is set to present its latest fiscal results, with the company reporting a substantial net loss for the first nine months of the year. The loss figure reflects a sharp deterioration from the prior period, driven in part by early operational issues at Siemens Gamesa. The current forecast indicates further pressure on earnings as the firm refines its strategic plan.
The wind turbine unit continues to face elevated failure rates in components produced by Gamesa. The expected repair costs are projected to extend into the 2024 and 2025 fiscal years, with anticipated charges of around two point two billion euros tied to quality issues on certain land-based platforms. The parent company and Siemens Energy have forecast a significantly higher annual net loss for the year, moving toward approximately four point five billion euros in total.