Siemens Energy wants to focus its wind business regionally and simplify its product range in order to reach break-even in two years as announced.
The guiding criteria for the selection of countries should be margin potential or regulatory and political framework conditions under which fair competition is possible, according to a statement that the troubled energy technology group published on this year’s Capital Markets Day.
In the offshore business, the subsidiary Siemens Gamesa will expand its production capacities in order to be able to meet the high demand. “We have now defined a clear path and an action plan to achieve breakeven for the wind business in the 2026 financial year and then return to profitability,” said CEO Christian Bruch.
Siemens Gamesa had pushed the parent company deep into the red in the past financial year with billions in losses as a result of quality problems with onshore wind turbines and difficulties in ramping up offshore wind turbines. When presenting the balance sheet last week, Bruch had to admit that Gamesa would also incur losses in this and the next financial year.
Siemens Energy did not initially name any longer-term margin targets for the wind business. A margin of 5 to 7 percent should be achieved in the group in 2026. In addition, the traditional business with gas power plants (Gas Services) should have a return of 10 to 12 percent, the business with grid technology (Grid Technologies) should have a return of 9 to 11 percent and the business with hydrogen, compressors, generators and so on digitalization (Transformation of Industry) generate 7 to 9 percent returns. The margin target corridors in the last two areas are therefore set 100 basis points higher compared to the targets for 2025.
Siemens Energy wants to reduce costs at Gamesa by around 400 million euros
Siemens Energy wants to reduce costs in the wind business by around 400 million euros by the 2026 financial year. To this end, the structures at Siemens Gamesa are to be simplified, among other things, according to a presentation on Capital Markets Day.
In the onshore wind business, Europe is seen as a core market for Siemens Gamesa. All other markets would be evaluated based on their attractiveness to Siemens Gamesa, the presentation said.
Siemens Energy is burdened by statements from the Gamesa boss
Shares in Siemens Energy fell significantly on Tuesday afternoon during a presentation on the wind power business of its subsidiary Siemens Games. Initially, the energy technology company’s shares lost almost twelve percent before they were able to curb the loss somewhat to around seven percent.
Gamesa boss Jochen Eickholt had expressed that they wanted to become more active again as soon as possible in the business with wind power turbines for use on land (onshore). The market thought that the focus was more on wind power at sea (offshore), said a trader. Onshore has always been problematic, but is now being continued.
Another stockbroker argued similarly: the onshore business is less attractive than offshore, which is why Eickholt’s statements “were probably not heard well.” In addition, fears of a capital increase continue to resonate on the market.
FRANKFURT (Dow Jones / dpa-AFX)
Selected leverage products on Siemens Energy
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on Siemens Energy
The leverage must be between 2 and 20
Advertising