Siemens Energy: Spanish subsidiary spoils the start of the year for the Munich Dax group

Created: 02/09/2022, 08:50

Siemens Energy slipped into the red in the first quarter.

© Sebastian Kahnert/dpa/dpa central image

Siemens Energy continues to struggle with problems at its Spanish wind energy subsidiary Gamesa.

That screwed up the start of the financial year for the group.

Munich - The energy technology group Siemens* Energy slipped into the red in the first quarter of its fiscal year due to losses at its Spanish wind energy subsidiary Siemens Gamesa.

From October to the end of December, Siemens Energy made a net loss of 240 million euros, the Dax company announced on Wednesday.

In the same period last year, a profit of 99 million euros was achieved.

However, the fact remains that the group will significantly improve its earnings for the year as a whole. 

Siemens Energy had already presented preliminary quarterly figures in January after another profit warning from Gamesa and reduced its sales and return expectations for the 2022 fiscal year.

Siemens Energy: power plant business is running

While the business with gas and steam power plants was able to increase significantly, Gamesa made heavy losses.

The subsidiary is struggling with delivery bottlenecks and rising raw material costs.

That pushed Siemens Energy's Adjusted Ebita negative to a deficit of 57 million euros in the quarter.

Siemens Energy boss Christian Bruch is now sending his former board colleague Jochen Eickholt to Spain.

The 60-year-old is scheduled to take over the top position at Gamesa from Andreas Nauen at the beginning of March.

Bruch cannot take action at the subsidiary because Siemens Energy only holds around two-thirds of the shares.

According to insiders, Siemens Energy is exploring ways to acquire the remaining shares.

Siemens Energy: New setback at Gamesa

The growth in gas and power shows that the division is on the right track, Bruch said on Wednesday.

Gamesa's renewed profit warning, on the other hand, is a setback and disappointing for all shareholders.

"As the majority shareholder, we will continue to support SGRE in achieving the turnaround in the onshore business, even in a difficult market environment."

The supply chain problem is not only a brake on Gamesa.

The group is assuming ongoing impairments in the global supply chains, it said.

The corona pandemic is also still a factor of uncertainty.

"Therefore bottlenecks in materials and components and/or lack of freight capacities can continue to burden our business activities."