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Wednesday, May 25, 2022
HomeLatest NewsSiemens Gamesa provoked losses up to 780 million due to electricity costs

Siemens Gamesa provoked losses up to 780 million due to electricity costs

Siemens Gamesa has increased its losses to 780 million euros in the first half of fiscal year 2022, against the “red figures” of 54 million euros the same period a year ago, influenced by the volatility of the current context and problems launching its 5.X platform, said the company, announcing launching a new plan in the long term, in order to “realize your full potential”.

The group emphasized that production and profitability continued to suffers during this period due to greater pressure from energy, raw material and logistics costs, due to the unavailability of key wind turbine components, due to congested ports and due to delays in investment decisions by our customers, which also temporarily affect commercial activity in the Onshore market (onshore wind energy).

first half sales Siemens Gamesa amounted to 4,006 million euros, which is 13% less than in the same period of the previous year. Turnover in the wind turbine segment fell 19% to €3,062 million, while services sales of €944 million rose 14%. Operating result (Ebit) before PPA and before integration and restructuring costs resulted in a negative balance sheet of 614 million euros, equivalent to a margin of -15.3%.

As at 31 March, the net financial debt position was -1,731 million euros. The company has 4,387 million euros in approved funding lines, of which 1,908 million euros have been used. In addition, the company’s total liquidity is 3,538 million euros, including cash on hand at the end of the second quarter (1,058 million euros).

In this context, the wind turbine manufacturer, which in March last year adopted relay in his dome with the appointment of Jochen Eickholt as CEO noted that she had already launched actions to “urgent” address short-term priorities and launch a new plan to develop its capacity.

The program, called Mistral, will focus on identify key levers to increase profits in the medium term, for example, to achieve high results, create a portfolio of high quality and competitive products, optimize cash flows and study transformation measures to unlock the full potential of Siemens Gamesa in the long term, including harmonization technology and portfolio review. .

Eickholt noted that second quarter results “reflect internal challenges and external factors that we face.” “Since I joined Siemens Gamesa as CEO on March 1, we have focused on identifying the root causes of our poor performance. We are implementing measures to resolve short-term problems and stabilize the company as soon as possible, and are also working on a plan that will allow us to unlock the full potential of the company,” he said.

Siemens Games signed orders in the second quarter for 1,198 million euros, a result that is related to the longer duration of commercial negotiations in the “Onshore”, the current inflationary environment and the usual volatility of commercial activity in the “Offshore” (offshore wind). Thus, at the end of March, the group’s order book amounted to 32,831 million euros, which reflects the expected growth in wind energy.

A few weeks ago, the group already informed the market that under the current conditions could not be assessed with the necessary degree of certainty. the impact of internal and external issues for which it has been revising its performance forecasts in FY 2022 and that, therefore, the previous market recommendations for that year are no longer valid and are subject to revision.

In this regard, the company continued to work with the goal of achieving sales growth in the range of -9% to -2% compared to fiscal 2021 and a profit in the lower part of the range of previous guidance. indicated for Ebit margin before PPA and before I&R costs of -4%, including in both parameters the positive impact of the sale of development assets in southern Europe.


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