Siemens Energy confirms talks with German government as wind turbine business struggles

In a statement in response to media reports, the company said, “The executive board is evaluating measures to strengthen the balance sheet of Siemens Energy and is in preliminary talks with different stakeholders, including banking partners and the German government, to ensure access to an increasing volume of guarantees necessary to facilitate the anticipated strong growth.”

Siemens Energy said its financial results for fiscal year 2023 are expected to be fully in line with guidance. It said its former gas and power businesses are expected to continue “excellent performance” in fiscal year 2024 and are on track to achieve their mid-term targets.

However, the company went on to state that its wind business, Siemens Gamesa, “is working through quality issues and is addressing offshore ramp up challenges.”

Siemens Energy further stated that for the time being, Siemens Gamesa is not concluding new contracts for certain onshore platforms and is applying “strict selectivity” in the offshore wind business. Order intake and revenue are therefore expected to be lower than market expectations for fiscal year 2024, and net losses and cash outflow are expected to be higher than market forecasts.

Siemens Energy’s said its budgeting process is still ongoing and no decisions in respect to its annual budget for 2024 and/or any specific financing measures have yet been taken by the board.