Energy
Thursday, October 26th, 2023 2:06 pm EDT
Key Points
- Siemens Energy shares plunged over 30% as the company sought guarantees from the German government due to challenges in its wind power division Siemens Gamesa, which had previously led to the cancellation of its profit forecast.
- The company cited an increased failure rate of wind turbine components in Siemens Gamesa and warned that these issues could persist for years.
- Siemens Energy’s strong order intake, particularly in its former Gas and Power business areas, necessitated guarantees for long-term projects, prompting preliminary talks with stakeholders, including the German government. Reports suggested the company was seeking up to €15 billion in guarantees. The firm’s shares are down 59% year-to-date.
Siemens Energy saw its shares plummet by over 30% as the company sought guarantees from the German government. This move comes after Siemens Energy canceled its profit forecast earlier in the year, citing a significant increase in the failure rates of wind turbine components at its wind division Siemens Gamesa. The company expressed the need for guarantees to support long-term projects, especially in its former Gas and Power business areas. While the company didn’t specify the financial details of the package, reports suggested it was seeking up to €15 billion in guarantees. Siemens Energy is expected to report its fiscal fourth-quarter results on November 15, but its annual budget for 2024 is yet to be determined.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/10/26/siemens-energy-shares-slide-32percent-after-company-seeks-support-from-german-government-.html
