Siemens Energy earns 1,582 million in its first quarter, despite Gamesa's losses of 426 million

MADRID, 7 Feb.

Siemens Energy earns 1,582 million in its first quarter, despite Gamesa's losses of 426 million


Siemens Energy obtained a net profit of 1,582 million euros in the first quarter of its fiscal year (October to December), compared to losses of 598 million euros in the same period of the previous year, the company reported.

Profits in the period of the German energy group, owner of wind turbine maker Siemens Gamesa, were boosted by the sale of the 18% stake in its Indian subsidiary to its parent company Siemens AG for 2.1 billion euros.

This result occurred despite the fact that its Siemens Gamesa wind business continued to accumulate losses, with 'red numbers' of 426 million euros in this first quarter, a figure that is reduced by almost half compared to 759 million euros. from a year ago.

Siemens Energy's revenues amounted to €7,649 million, an increase of 12.6% in comparable terms, driven especially by the Grid Technologies segment.

For their part, orders increased by 23.9% in comparable terms - excluding currency conversion and portfolio effects - to €15.4 billion. This brought its order book to a new record of 118 billion euros.

Siemens Energy President and CEO Christian Bruch highlighted that this "solid" first quarter is "encouraging, partly also due to project changes, which are normal in plant engineering, especially with the market dynamics that we are currently seeing.

"That's why our focus remains on resolving quality issues in our onshore wind business and maximizing growth potential for the rest of the company," he added.

Siemens Energy is recovering from quality problems suffered in its most modern turbines (5.X and 4.X), which led to a crisis in which it had to ask the German Government for help.

Last November, Siemens Energy agreed to aid in which the German government will guarantee 7.5 billion euros of a total amount of 12 billion euros of guarantees, of which 11 billion euros will be provided to the company through a consortium. of banks, after announcing record losses of 4,588 million euros in its fiscal year 2023, weighed down mainly by its wind subsidiary.

Orders in Siemens Gamesa's wind business stood at 1,565 million euros, practically at a level similar to the first quarter of last year, since the offshore (offshore wind) and service companies registered clear and significant increases, respectively, while onshore orders were more than halved, largely due to a temporary halt in sales activities for the 4.X and 5.X onshore turbines.

Despite this, Siemens Energy indicated that there will be no changes to the €1.6 billion it expects in costs to resolve quality issues in its onshore wind turbine division.

For the full year 2024, Siemens Energy confirmed its guidance for comparable revenue growth of between 3% and 7% and a profit margin before exceptional items of between -2% and 1%.