Update Post: November 30, 2023 5:51 pm
Siemens Gamesa’s wind subsidiary, Siemens Energy, has announced that it aims to achieve an adjustment of around 400 million euros by 2026. three years. This is reflected in the slides prepared for a company presentation and Europa Press information.
The financial director of Siemens Energy, María Ferraro, has signed that correcting the Gamesa situation is an “imperative” for the German firm. Thus, the purpose is for Siemens Gamesa to focus its onshore or onshore wind business based on specific criteria, such as supporting regulations and policies and large benefit pools that will result in an optimized footprint.
Offshore wind business
Regarding the ‘offshore’ or offshore wind business, the company has indicated that its wind subsidiary is increasing production capacity in existing factories to satisfy customer demand and respond to the order book.
The multinational has defended that strengthening operational excellence through specific initiatives per plant, as well as applying commercial selectivity and the implementation of cost savings will increase profitability. Thus, Siemens Gamesa expects to “reach breakeven by fiscal year 2026, followed by profitable growth.”
Siemens Energy losses
Siemens Energy recorded its net losses at a record figure of 4,588 million euros in its fiscal year 2023, which represents more than sixfold the ‘red numbers’ of 712 million euros from the previous year, impacted by the problems in its wind business and It is Siemens Gamesa.
These problems led the group to seek an agreement to access credit lines from the German Government, its parent company Siemens AG and the bank to come to the ‘rescue’ of the company and be able to support the strong growth in orders. During the past year, Siemens Gamesa, a company that was delisted from the Stock Exchange at the end of 2022, already suffered losses of 940 million euros.
However, Siemens Energy indicated that the costs associated with quality problems in the onshore business (land wind), together with the increase in costs and challenges in expanding capacity in the offshore business (offshore wind) have seriously affected the results for fiscal year 2023 will continue to impact the group’s profitability in the short and medium term.