The energy technology group Siemens Energy critical which was recently in the limelight because of the turbine for the Nord Stream 1 gas pipeline, is struggling with losses.
The reason for this was again losses at the Spanish wind energy subsidiary Siemens Gamesa, but also burdens from the restructuring of the business in Russia. After Russia invaded Ukraine, the group put its Russian business to the test.
The energy technology group Siemens Energy, which was recently in the limelight because of the turbine for the Nord Stream 1 gas pipeline, is struggling with losses.
In the third quarter of the 2021/2022 financial year, the group made a loss after taxes of 533 million euros, the company announced on Monday. In the same period last year there was a deficit of 307 million euros in the books.
The reason for this was again losses at the Spanish wind energy subsidiary Siemens Gamesa, but also burdens from the restructuring of the business in Russia. After Russia invaded Ukraine, the group put its Russian business to the test.
For the year as a whole, Siemens Energy now expects an after-tax loss that will exceed the previous year’s level of minus EUR 560 million, approximately in the amount of the charges in connection with the restructuring of the Russian business. Especially in connection with this restructuring, the special effects in the quarter would have amounted to minus 298 million euros.
“The poor performance of Siemens Gamesa has a negative impact on our overall result. We now expect the management of Siemens Gamesa to consistently implement the restructuring plan,” emphasized the head of Siemens Energy, Christian Bruch.
Restructuring of activities in Russia initially cost 200 million
The company announced that Siemens Energy began restructuring its business activities in Russia in the past quarter.
This burdened the result of the Gas and Power division with 200 million euros, which was reported as a special effect. Siemens Energy expects that these restructuring measures will be completed by the end of this fiscal year and will not have any further significant financial impact.
Adjusted EBITA before special items for the group as a whole was minus 131 million euros in the quarter, after a profit of 54 million euros in the same period last year. The classic Gas and Power business remained almost stable, while the Spanish subsidiary continued to slide.