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Siemens Energy loses 533 million, Russia turbine ready
Moscow business restructuring and Spain integration weigh on
08 August, 17:07
(ANSA) - MILANO, 08 AGO - A quarter in the red for Siemens
Energy (35.1% Siemens), which is ready to "send the turbine to
Russia" to restart the Nord Stream gas pipeline, but lowered
estimates for the full year 2021/2022 despite rising orders.
That's the picture drawn by Chairman and CEO Christian Bruch, who presented the Q3 accounts to financial analysts. On the turbine front that generated according to Moscow the blockage of the pipeline to Germany Bruch clarified that negotiations continue and it remains to be decided "who will make the delivery." Indeed, at stake are sanctions banning trade relations with Russia following the attack on Ukraine last Feb. 24. "We don't see anything that would prevent us from taking it back to Russia," Bruch explained, "but of course it takes someone to do it, and it is not yet clear who. It is precisely Russia that, together with Spain, constitutes the thorn in the side of the Group, which closed the quarter last June 30 with revenues down 4.7 percent to 7.3 billion euros in the face of a 60 percent jump in orders, which rose to 9.8 billion euros, bringing the global portfolio to a record 93.4 billion, so much so that Bruch spoke of "very strong order intake, all in the energy transition sector." Worst of all was the operating result, which was 429 million euros in the red, up more than 200 percent from 124 million in the same period in 2021. Up 73.5 percent was the net loss, rising from 307 to 533 million euros. Among the reasons for Siemens Energy Bruch's disappointing quarterly results were "sharply rising extraordinary items" related to the restructuring of the Russian business and "higher costs" for the restructuring and integration of Siemens Gamesa Renewable Energy in Spain, whose 32.9 percent not yet owned stake it acquired last May through a voluntary public offering at 18 euros per share, with a total outlay of 4.3 billion euros. Thus, the Group formed from the spin-off of Siemens' energy business from September 2020 lowered its estimates for the current fiscal year, with "revenues growing on a comparable basis" and an operating loss "higher than in 2021." Adjusted EBITDA is expected to grow "between 1 and 5 percent" versus the previous estimate of "between 4.5 and 6.5 percent," while for 2023 Mol growth is expected to be "between 6 and 8 percent." Expected year-end revenues are down 2 percent, while operating income will lose "around 5 percent." In Spain, the acquisition of 100 percent of Gamesa Renewable Energy is expected "by the end of the year," according to CFO Maria Ferraro, with the green light from the Iberian authorities "already in the coming weeks." In Russia, on the other hand, Siemens Energy began withdrawing its operations during the quarter that just ended, with a 'one-time' restructuring cost of €200 million at the end of the year, with "no further major financial impact," according to Bruch's estimates. (ANSA).
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That's the picture drawn by Chairman and CEO Christian Bruch, who presented the Q3 accounts to financial analysts. On the turbine front that generated according to Moscow the blockage of the pipeline to Germany Bruch clarified that negotiations continue and it remains to be decided "who will make the delivery." Indeed, at stake are sanctions banning trade relations with Russia following the attack on Ukraine last Feb. 24. "We don't see anything that would prevent us from taking it back to Russia," Bruch explained, "but of course it takes someone to do it, and it is not yet clear who. It is precisely Russia that, together with Spain, constitutes the thorn in the side of the Group, which closed the quarter last June 30 with revenues down 4.7 percent to 7.3 billion euros in the face of a 60 percent jump in orders, which rose to 9.8 billion euros, bringing the global portfolio to a record 93.4 billion, so much so that Bruch spoke of "very strong order intake, all in the energy transition sector." Worst of all was the operating result, which was 429 million euros in the red, up more than 200 percent from 124 million in the same period in 2021. Up 73.5 percent was the net loss, rising from 307 to 533 million euros. Among the reasons for Siemens Energy Bruch's disappointing quarterly results were "sharply rising extraordinary items" related to the restructuring of the Russian business and "higher costs" for the restructuring and integration of Siemens Gamesa Renewable Energy in Spain, whose 32.9 percent not yet owned stake it acquired last May through a voluntary public offering at 18 euros per share, with a total outlay of 4.3 billion euros. Thus, the Group formed from the spin-off of Siemens' energy business from September 2020 lowered its estimates for the current fiscal year, with "revenues growing on a comparable basis" and an operating loss "higher than in 2021." Adjusted EBITDA is expected to grow "between 1 and 5 percent" versus the previous estimate of "between 4.5 and 6.5 percent," while for 2023 Mol growth is expected to be "between 6 and 8 percent." Expected year-end revenues are down 2 percent, while operating income will lose "around 5 percent." In Spain, the acquisition of 100 percent of Gamesa Renewable Energy is expected "by the end of the year," according to CFO Maria Ferraro, with the green light from the Iberian authorities "already in the coming weeks." In Russia, on the other hand, Siemens Energy began withdrawing its operations during the quarter that just ended, with a 'one-time' restructuring cost of €200 million at the end of the year, with "no further major financial impact," according to Bruch's estimates. (ANSA).
