Siemens Energy announced on Wednesday its results for the third quarter of fiscal year 2024 that ended June 30, 2024.
“The rapidly growing electricity market requires a wide range of our products. Especially our grid and gas turbine businesses are benefiting from this momentum. Importantly, with growing our order backlog, we have been able to improve its margin quality as well. Despite all the challenges, we are optimistic about the future and after the first nine months, we are well on track to meet our full-year guidance”, says Christian Bruch, President and CEO of Siemens Energy AG.
During the third quarter of the fiscal year, Siemens Energy continued to benefit from the energy transition, with record order intake at Gas Services and record order backlog in both Gas Services and Grid Technologies. Revenue grew by 18.5% on a comparable basis to €8.8bn with substantial growth at Grid Technologies, Transformation of Industry and Siemens Gamesa.
Siemens Energy’s Profit before Special items again was positive with €49m (Q3 FY 2023: negative €2,048m). Prior-year’s quarter was heavily burdened by quality issues in Siemens Gamesa’s onshore business as well as increased product costs and ramp-up challenges in the offshore business. Special items were positive €69m (Q3 FY 2023: negative €41m) primarily related to the ongoing progress on disposals and the accelerated portfolio transformation. Profit for Siemens Energy came in at positive €119m (Q3 FY 2023: negative €2,089m).
Siemens Energy reported a Net loss of €102m (Q3 FY 2023: €2,931m). Corresponding basic earnings per share (EPS) were negative €0.16 (Q3 FY 2023: negative €3.42).
Free cash flow pre tax was €727m (Q3 FY 2023: €27m) with positive contributions by all segments except Siemens Gamesa which continued to be negative, as expected.
Due to the good development in the first nine months, Siemens now expect a positive Free cash flow pre tax in a range of €1.0bn to €1.5bn for the fiscal year (previously up to €1.0bn)
As we reported in an article published on 8 May this year, Siemens Energy, one of the leading suppliers to the power industry, has unveiled fundamental changes to its wind energy division. Board member Vinod Philip will become the new CEO of the Siemens Gamesa wind turbine division from August. These moves, which also include job cuts, represent the company’s determination to cope with the difficult situation the company finds itself in.
The announced changes have been met with an enthusiastic reception in the financial markets, reflected in Siemens Energy’s shares rising by as much as 11.5 per cent, signalling a positive turnaround after the severe quality problems that have affected wind turbine platforms in the past. This change, company officials stress, is not only an attempt to repair its reputation in the wind energy industry, but also a move towards simplifying operations and increasing focus on key business areas. The new course, which includes both personnel and operational changes, is expected to help create a more sustainable and profitable future for the company.
In addition, Siemens Energy has offered an increased outlook for the full year – the company expects sales growth of 10-12% in 2024 – and a significant increase in quarterly operating profit, providing an additional boost to investors and market observers. In the context of personnel changes, the appointment of a new CEO is interpreted as a step towards refreshing and modernising the management of the wind business segment. This is because the new CEO, Vinod Philip, brings with him an abundance of management experience and a long history of working in the energy industry. Thus, his election symbolises the hope for a new chapter in the history of Siemens Energy’s wind business to help rebuild customer and investor confidence. These changes reaffirm Siemens Energy’s commitment to transform its business in a way that benefits both the company and its stakeholders, underlining its determination to pursue sustainable and efficient growth in the future.
In the February Equinor and Polenergia have selected Siemens Gamesa as their wind turbine supplier for the Bałtyk II and Bałtyk III offshore wind farms located in the Baltic Sea. The two energy companies have signed final contracts for the production, delivery and service of 100 modern offshore wind turbines.
Source: Siemens Energy & BalticWind.EU
