Siemens Gamesa, one of Vestas' biggest competitors, has presented its financial statements for its 2022/2023 financial year on Wednesday. The financial statements were presented as part of Siemens Energy's overall financial statements, of which Siemens Gamesa is a part, and the wind turbine manufacturer achieved crimson numbers in the financial year.
The deficit was thus 4.347 billion euros, corresponding to approximately 32.4 billion kroner. This deficit is more than seven times larger than the previous year, when the deficit was 617 million euros. This deficit pulls the entire Siemens Energy down to a total deficit of 4.588 billion euros out of a turnover that otherwise increased by 9.9 percent to 31.1 billion euros.
The reason for the deficit at Siemens Gamesa must be found in particular in the company's onshore business, where quality problems with the onshore platforms 4.X and 5.X have cost the company a lot of money. The company is at an advanced stage in the analysis of the problems, and therefore it must be considered positive news that no new problems have been found. Therefore, Siemens Gamesa is not setting aside additional money to cover losses on these platforms. However, the sale of turbines on the 5.X platform has still been suspended.
CEO looks to the future with optimism
These factors, combined with generally increasing product costs and challenges in starting up the offshore business, however, strongly affected the results for Siemens Gamesa in the financial year, Siemens Energy informs.
- In a year of unusual challenges, Siemens Energy showed that turning points are achievable. All of our businesses, except wind, meet or exceed their annual targets. We are also seeing progress in addressing the issues at Siemens Gamesa, and I am encouraged that data from the installed onshore turbines confirms our previous findings. Our strong balance sheet remains at the top of the agenda, and Siemens Energy's vital role in the energy transition will continue to drive our growth and success in the years ahead, says Christian Bruch, CEO of Siemens Energy.
Despite the improvement, however, the issues will continue to affect the wind turbine manufacturer, and Siemens Gamesa is now only expected to break even in 2026. Previously, the expectation was that this would happen in 2024. However, a deficit of two billion euros (14.9 billion DKK) is now expected here instead.
While Siemens Gamesa is therefore still expected to make a large loss in the coming financial year, the entire Siemens Energy business expects to be in the black in the new financial year. The company thus expects to lift its profit margin before special items to between -2 percent and 1 percent. (compared to a profit margin in the past financial year of -8.9 percent). The major improvement is expected to come mainly from the gas business.
Text, graphics, images, sound, and other content on this website are protected under copyright law. DK Medier reserves all rights to the content, including the right to exploit the content for the purpose of text and data mining, cf. Section 11b of the Copyright Act and Article 4 of the DSM Directive.
Customers with IP agreements/major customer agreements may only share Danish Offshore Industry articles internally for the purpose of handling specific cases. Sharing in connection with specific cases refers to journaling, archiving, or similar uses.
Customers with a personal subscription/login may not share Danish Offshore Industry articles with individuals who do not themselves have a personal subscription to Danish Offshore Industry.
Any deviation from the above requires written consent from DK Medier.
