Siemens Energy announces losses of 3,639 million euros dragged down by Siemens Gamesa

The German multinational has presented the results for the third quarter of the year, a period in which it has been affected by the “serious acceleration challenges in the wind business”.

The German multinational Siemens Energy, owner of the former Gamesa based in Zamudio (Bizkaia), has shot up its losses to 3,639 million euros, weighed down by the “serious challenges” affecting Siemens Gamesa. Losses have increased fivefold (410.8%) compared to the previous year.

The company chaired by Christian Bruch has released the results for the third quarter of the year, which deepen the negative path that began in 2022.

Faults detected in the turbines of the latest generation wind platforms (specifically, in the 4.X and 5.X models) as well as “as well as higher product costs and increasing challenges in the offshore business” have caused charges of 2,200 million euros (in May they had calculated that it would be 800 million euros).

Bruch says the company faces “serious challenges” with Gamesa, but stresses that “the good results of our other businesses give me confidence in our company’s ability to put the company back on a solid footing.”

In light of the events, its Basque subsidiary, the multinational anticipates that the losses will be, at the end of the year (October 2023), 4.5 billion euros.

However, the company stresses that it continues to benefit from a “favorable market environment”. Based on the data provided, orders of €14.9 billion reflect growth of 54.2% on a like-for-like basis (excluding currency translation and portfolio effects), driven mainly by large orders at Siemens Gamesa and Grid Technologies.

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