The wind power subsidiary Gemesa thwarts the plans of Siemens Energy again – it was not well received on the stock exchange.
(Photo: Reuters)
Munich The energy technology group Siemens Energy will not get the problems at the wind power subsidiary Siemens Gamesa under control in the new fiscal year either. Because of the poor figures in the renewable energies division, the Dax group had to adjust its expectations for the 2021/22 financial year, which ends on September 30th, downwards.
As the group announced on Thursday evening, Siemens Gamesa achieved an operating loss of 309 million euros before special items in the first quarter of the current fiscal year – i.e. in the period from October to December. In addition, Siemens Gamesa is also lowering its expectations for the full year.
The wind power group justifies the bad numbers with problems in the supply chain, the corona pandemic and difficulties in ramping up the new onshore turbine generation 5.X. In the first quarter, the company had to announce special charges of 289 million euros. An operating loss is now possible for the year as a whole. In terms of sales, Siemens Gamesa is now preparing for a decline of two to nine percent instead of the previous two to seven percent.
As a result, the entire Siemens Energy Group slipped into the red. The operating minus (adjusted Ebita) was around 57 million euros in the first quarter of 2021/22, Siemens Energy announced. In the same period of the previous year, the Siemens offshoot had earned 243 million euros from operations. Analysts had expected an average profit of 91 million euros. Siemens Energy’s sales fell by a good eleven percent on a comparable basis to almost six billion euros in the first quarter. Analysts had forecast an average of 6.3 billion euros here.
Top jobs of the day
Find the best jobs now and
be notified by email.
For the full year 2021/22, Siemens Energy now expects a drop in sales of up to two percent (previously: up to one percent). In the best case, however, sales will increase by three percent as planned, because business with gas and steam power plants is going as planned.
The adjusted operating return on sales of Siemens Energy for the full year before special items should be between two and four percent; so far there has been talk of three to five percent. Siemens Energy is now even questioning the forecast for the coming 2022/23 fiscal year. The Executive Board now wants to check whether the planned 6.5 to 8.5 percent operating return before special effects is possible.
The latest figures were not well received on the stock exchange. On the Tradegate trading platform, Siemens Energy’s share price fell by three percent late Thursday evening in an after-hours reaction. Siemens Gamesa shares lost two and a half percent.
Experts recommend full integration from Siemens Gamesa
The Siemens group spun off its energy technology more than a year ago and listed it on the stock exchange as Siemens Energy. The traditional power plant business with gas turbines was seen as a case for restructuring, and renewable energies as a beacon of hope. But Siemens Gamesa repeatedly caused bad news with profit warnings. Siemens Energy boss Christian Bruch replaced the top management at the listed subsidiary and was confident in the fall: “The measures taken are having an effect.”
One problem is that Siemens Gamesa is an independent, publicly traded company. The parent company Siemens Energy does not have full control, it can only control via the supervisory board. Investors hope that one day that will change. “With full integration, Siemens Energy could govern more easily, break up structures and streamline decision-making processes,” says Ingo Speich from Deka Investment in the Handelsblatt. Vera Diehl from Union Investment is also convinced: “Of course, a full integration of Siemens Gamesa would be the best solution.”
However, according to estimates in industry circles, Siemens Energy could not currently afford a cash-financed takeover of the remaining shares in Siemens Gamesa. Siemens Energy board member Jochen Eickholt said about the discussion recently in an interview with the Handelsblatt: “Everything has already been said about it: Siemens Gamesa is great with offshore and service, onshore causes problems. However, problems with projects and new developments are not due to the ownership structure.”
It helps Siemens Energy a little that at least business with the second pillar “Gas and Power” is going well. The power plant division posted a drop in sales from 4.3 to 4.1 billion euros in the first quarter of 2021/22. However, the adjusted operating result of 259 million euros was significantly better than analysts had expected. The division should also meet the forecasts for the year as a whole.
More: Investors put pressure on Siemens Energy: “Full integration of Gamesa would be the best solution”
