(CercleFinance.com) – Siemens Energy recorded a sharp increase on Wednesday on the Frankfurt Stock Exchange following the presentation of a series of measures intended to improve its cash flow, which overshadowed results still weighed down by its activities in renewable energies.
The German energy group’s shares are currently climbing by more than 5%, marking the second largest increase in the DAX index behind Infineon (+6%).
Siemens Energy reported this morning a net loss of 870 million euros for its fourth fiscal quarter, ended at the end of September, mainly due to recurring difficulties encountered by its wind turbine subsidiary Siemens Gamesa.
The company, which nevertheless emphasizes that two-thirds of its activities are evolving on a favorable profitability trajectory, announces a turnover of 8.5 billion euros, down 2.5% on a comparable basis.
For its new fiscal year, which began in October, the company says it expects negative free cash flow (FCF) of one billion euros.
But it also plans to raise between 2.5 and three billion euros in funds through disposals and the transformation of its portfolio.
Another encouraging element, its parent company Siemens has agreed to buy back 18% of its shares in Siemens India for 2.1 billion dollars, an amount which will be added to the 12 billion euros in guarantees received from its partners, including 7.5 billion from the German state.
For Berenberg analysts, this publication will allow the market to ‘turn the page’ after a ‘complicated’ episode.
‘While it is true that the current situation remains incredibly difficult, it seems that we are past the worst in terms of losses and bad news,’ said the consultancy in a reaction note.
‘Knowing that there is unlikely to be a need for a capital increase, this should be welcomed,’ concludes Berenberg.
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