Siemens Energy Earnings Release Q2 FY 2022
Gas and Power with solid performance, disappointing results at SGRE weigh down Siemens Energy Group
- Continuing constraints in global supply chains carried on affecting the business of Siemens Energy, predominantly at Siemens Gamesa Renewable Energy (SGRE), where difficult supply markets amplified the impacts rooting in continued operational problems. As a result, SGRE reported an Adjusted EBITA of negative €301m for the second quarter.
- The consequences of the war in Ukraine led to initial minor negative effects on the second quarter results of Siemens Energy.
- Solid orders of €7.9bn included a strong contribution from Gas and Power (GP), resulting in the order backlog climbing to a record of €89.3bn. Compared to the exceptional high prior-year figure, orders came in 27.5% lower for the quarter on a comparable basis (excluding currency translation and portfolio effects).
- Revenue of €6.6m was slightly down by 1.7% on a comparable basis, as moderate growth at GP was more than offset by a decline at SGRE.
- Adjusted EBITA for Siemens Energy was negative €77m (Q2 FY 2021: positive €197m) due to the loss at SGRE. In contrast, GP substantially increased its Adjusted EBITA year-over-year. Adjusted EBITA before special items of Siemens Energy was negative €21m compared to positive €288m in prior-year quarter.
- Siemens Energy’s net loss amounted to €252m (Q2 FY 2021: net income of €31m). Corresponding basic earnings per share (EPS) were negative €0.22 (Q2 FY 2021: positive €0.03).
- Free cash flow pre tax sharply decreased to negative €351m (Q2 FY 2021: positive €433m) driven by the earnings decline at SGRE while GP delivered a positive contribution.
- Given SGRE’s adjusted aspiration for fiscal year 2022 and in light of prevailing challenges, management now expects for Siemens Energy for fiscal year 2022 results towards the low end of the guidance ranges for comparable revenue development (negative 2% to positive 3%) and Adjusted EBITA margin before special items (positive 2% to positive 4%).
- Management notes an increasingly challenging environment and growing uncertainty with regards to the continuation and economic burdens of the war in Ukraine as well as the COVID-19 situation in China and cannot rule out further negative effects associated to an escalation of these factors.
Christian Bruch, President and Chief Executive Officer of Siemens Energy AG:
“Gas and Power delivered a solid performance this quarter. The segment delivered a solid operating result and a strong order intake despite first impacts of the sanctions against Russia and increasing supply chains constraints. Disappointing again is the performance of SGRE which is weighing heavily on Siemens Energy. The situation at SGRE has aggravated further since the last profit warning. As majority shareholder, we provide our expertise to get to the bottom of the problems and to tackle the issues”
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