Energy
Wednesday, February 7th, 2024 4:05 pm EDT
Key Points
- Siemens Energy reported a significant turnaround, achieving a net profit of 1.58 billion euros in its first fiscal quarter, attributed to the sale of its stake in India’s Siemens Limited for 2.1 billion euros.
- The company experienced a remarkable 23.9% year-on-year increase in orders, totaling 15.4 billion euros, leading to a record-high order backlog of 118 billion euros, with revenue rising by 12.6% on a comparable basis, particularly driven by the strong performance of the grid technologies division.
- Despite challenges faced in 2023 due to manufacturing faults at Siemens Gamesa, resulting in significant losses, Siemens Energy’s CFO, Maria Ferraro, expressed confidence in the company’s momentum, highlighting ongoing efforts to address quality issues, particularly within Siemens Gamesa, and emphasizing the record order backlog in the offshore business, indicating a positive outlook for continued growth, especially in the grid technologies division.
Siemens Energy reported a significant turnaround in its first fiscal quarter, shifting from a loss to a net profit of 1.58 billion euros, primarily driven by a one-off gain from selling its stake in India’s Siemens Limited for 2.1 billion euros. The company witnessed a robust 23.9% year-on-year increase in orders, totaling 15.4 billion euros, resulting in a record-high order backlog of 118 billion euros. Revenue also saw a notable 12.6% rise on a comparable basis, reaching 7.6 billion euros, with particular strength observed in the grid technologies division. Despite challenges faced in 2023 due to manufacturing faults at Siemens Gamesa, resulting in a significant loss, Siemens Energy’s CFO Maria Ferraro expressed satisfaction with the company’s momentum and strong order intake. She highlighted ongoing efforts to address quality issues at Siemens Gamesa while emphasizing the record order backlog in the offshore business, totaling nearly 42 billion euros. Orders in the grid technologies division surged by 32.9% to 8.24 billion euros, reflecting a positive outlook for continued momentum and benefit from global energy and green agenda initiatives. Overall, Siemens Energy appears optimistic about its performance trajectory, indicating a stable quarter and ongoing steps to rectify quality issues, especially within Siemens Gamesa, while capitalizing on growing opportunities in the energy sector.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/07/siemens-energy-swings-to-profit-on-order-surge-sale-of-indian-stake.html
