Siemens Energy, the German multinational corporation, is in the early stages of negotiations with banking partners and the German government to obtain guarantees that will facilitate the projected robust growth in its former gas and power segments. This strategic move is driven by the need to support the strong development of these businesses.
While Siemens Energy anticipates continued exceptional performance in its former gas and power divisions throughout fiscal year 2024, with progress aligned with its mid-term targets for fiscal year 2025, it has also sounded a cautionary note regarding Siemens Gamesa, a troubled turbine manufacturer.
In an official statement, Siemens Energy indicated, “The wind business Siemens Gamesa is working through the quality issues and is addressing the offshore ramp-up challenges as announced in the third-quarter communication for fiscal year 2023. As Siemens Gamesa is, for the time being, not concluding new contracts for certain onshore platforms and is applying strict selectivity in the offshore business, order intake and revenue are expected to be lower than market expectations for fiscal year 2024. Net losses and cash outflow are also expected to surpass market forecasts.”
The surging order intake, particularly in the former gas and power sectors, has created a growing demand for guarantees to support long-term projects. In response to this requirement, Siemens Energy's executive board is actively assessing various measures to bolster the company's balance sheet. The company is currently in preliminary discussions with a range of stakeholders, including banking partners and the German government.
It is important to note that Siemens Energy's budgeting process for the upcoming year is still in progress. As of now, no definitive decisions have been made by the Executive Board concerning the annual budget for 2024 or any specific financing measures. These discussions reflect the company's commitment to ensuring a stable and sustainable foundation for its continued growth and development.