Expensive wind turbines
Siemens Energy expects record loss
08/07/2023 11:22 am
Analysts did not expect this: Siemens Energy is facing a record loss. The elimination of quality problems in onshore wind turbines alone accounts for 1.6 billion euros. Then there are the higher production costs for wind turbines at sea.
In view of the renewed problems in the wind energy business, Siemens Energy expects a record net loss of around 4.5 billion euros in the fiscal year that runs until the end of September. In May, the group still expected a deficit of at least 800 million euros. The reason for the high losses are the already announced special charges at the subsidiary Siemens Gamesa, which the parent company now estimated in Munich at a total of 2.2 billion euros. Siemens Energy made more losses in the third fiscal quarter than at any time since the spin-off from Siemens.
The elimination of quality problems in wind turbines that have already been installed on land alone will cost 1.6 billion euros. In addition, higher product costs for wind turbines at sea weigh another 600 million euros.
In addition, Gamesa is also expected to lose another 600 million euros in the fourth quarter. In June, Siemens Energy shocked the markets with the announcement that additional costs of more than 1 billion euros were to be expected due to defective rotor blades and main bearings.
In the third quarter, the now 100 percent subsidiary Siemens Gamesa posted a loss of 2.55 billion euros, adjusted for special effects – after minus 382 million euros in the previous year. In the traditional business with gas turbines and transmission technology, the profits meanwhile showed a very clear increase, but could not compensate for the problems, so that the Siemens Energy Group incurred an adjusted loss of a good 2 (previous year: -0.2) billion euros. The bottom line was that after a write-off of around 700 million euros on capitalized deferred taxes, there was even a deficit of a good 2.9 billion euros.
Analysts had each expected significantly less loss. The consensus estimate compiled by S&P Global Intelligence had assumed an adjusted group loss of a good 1.1 billion euros and a net loss of 1.06 billion euros.