Incoming orders are growing, but the result is deep red. Against this background, Siemens Energy is talking to banks and the federal government, among others, about possible guarantees that the company needs for its growth.
Siemens Energy is talking to the federal government about possible state guarantees. The group confirmed corresponding reports on Thursday. “Preliminary discussions are being held with various parties, including partner banks of Siemens Energy and the federal government, to ensure access to a growing volume of guarantees that will enable the expected strong growth,” the energy technology group said.
A spokesman for the Ministry of Economic Affairs said the federal government was “in close and trusting discussions” with the company. The discussions are ongoing, so details cannot be commented on.
According to “WirtschaftsWoche”, it will be about guarantees for loans of up to 15 billion euros. The magazine relies on financial circles. Siemens Energy did not comment on the amount. The “Spiegel” also reported on the process, but mentions different amounts. According to “WirtschaftsWoche”, the guarantees are intended to prevent a scenario in which banks make important credit lines from Siemens Energy more expensive for projects or completely cancel them.
Energy cites strong growth in incoming orders as the reason for the increasing need for guarantees for long-term projects – particularly in the well-performing non-wind power sector. “The enormous pace of the energy transition ensures high demand for our technologies; our order backlog is 110 billion euros,” emphasized a spokesman. “This positive development in itself means that we have to issue guarantees to our customers to a greater extent. This is a challenge for all companies. We are therefore introducing measures to strengthen our balance sheet and are also holding discussions with the federal government, such as “We can ensure guarantee structures in the rapidly growing energy market.”
Wind power problems
At the same time, Siemens Energy emphasized that its results for the fiscal year that ended in September will be within the forecast. However, that means a loss of billions.
Siemens Energy is struggling with problems in its wind power division. For the time being, it is not accepting any further orders for certain onshore systems, which is why the figures there next year are expected to be below expectations, according to Energy. Other business areas, however, are doing well.
The news was poorly received by investors: the energy share had already lost ground in early trading, and after the official confirmation it fell into double-digit losses and reached an all-time low of less than nine euros.
Source: Stern
