The problems are not under control so far.
(Photo: Bloomberg)
For investors, shares in wind power specialists currently harbor great risks and great opportunities. On the one hand, all providers lose money in ruinous competition. But demand will increase in times of climate change and global turmoil. In the long run, the prospects are good – you just don’t know who will be among the winners.
Siemens Energy faces a similar situation: A complete takeover of the crisis subsidiary Siemens Gamesa is financially risky, the loss-making parent company has to spend billions to take over a third of the outstanding shares and take the subsidiary off the stock exchange.
However, renewable energies are a core component of the new group. The strength of Siemens Energy is that it offers the whole range like hardly any other company. From power generation with renewable and conventional energies to power transmission and hydrogen electrolyzers.
If wind power were to be discarded, one could live quite well from the lucrative service of older power plants for a long time to come. But these are rather bleak prospects. One could only dream of a return to the Dax and a world-class energy technology group from Germany.
Top jobs of the day
Find the best jobs now and
be notified by email.
But muddling on is not an alternative, the previous structure has largely failed due to its birth defect. With the merger with the listed Gamesa, portfolio strategist Joe Kaeser found a way for Siemens wind power to play an active role in industry consolidation without having to spend billions on a takeover.
But the price for the construct was high. Initially, Siemens got angry with the Spanish major shareholder Iberdrola. When this was bought out, however, there was still no direct control and could only be controlled indirectly via the board of directors.
In the past five years, Siemens and then Siemens Energy have not been able to get the problems under control. It was not possible to transfer Siemens’ strengths in the offshore business to Gamesa’s onshore wind turbines. The transparency of the numbers also left a lot to be desired. It didn’t help to change the boss several times.
Many trust the new Gamesa boss Jochen Eickholt to turn the tide. But project business cannot be turned around quickly. But time is pressing. Siemens Gamesa burns too much money. There is a threat of discussions about the need for capital increases, which will bring further unrest. Siemens Energy should therefore boldly take the step of a complete takeover.
More: Siemens Energy is about to take over a bid for Siemens Gamesa.