Siemens Energy to fix wind business while maintaining a solid financial foundation
London, 22 November 2023, (Oilandgaspress) – Siemens Energy presented a strategic outlook to analysts and investors. The Executive Board outlined a clear path to create shareholder value along three priorities: Deliver on profitable growth, fix the wind business and maintain a solid financial foundation.
“We are achieving consistent and impressive results in 70% of our businesses. Those results show that our underlying strategic north star to become a leader in the energy transition is right. Our portfolio is excellently positioned, and our record order backlog of 112 billion Euros clearly demonstrates this. As a next step, we will accelerate profitable growth and execute our order backlog with improved margins and operational excellence. The turnaround of Siemens Gamesa remains our highest priority and we now have a defined path and action plan to reach break-even for the wind business in fiscal year 2026 and to return to profitability thereafter,” said Christian Bruch, President and CEO of Siemens Energy. Siemens Energy’s CFO Maria Ferraro emphasized prudent resource allocation with focused investments geared towards growth or customer requirements. In addition, she re-emphasized the company’s commitment to maintain its investment grade credit profile which underlines Siemens Energy’s fiscal year 2024 net cash target.
The business areas Gas Services, Grid Technologies, and Transformation of Industry, which account for 70% of Siemens Energy’s revenue, are all on track to achieve or exceed their mid-term targets. Here, Siemens Energy benefits from strong market trends and its well positioned portfolio supporting customers with their decarbonization efforts. In these three business areas, Siemens Energy expects margins of 7-9% for Transformation of Industry (target upgraded), 9-11% for Grid Technologies (target upgraded) and 10-12% for Gas Services (target confirmed) by fiscal year 2026.
Global energy trends, like major grid investment and decarbonization, act as a catalyst for profitable growth across the entire Siemens Energy portfolio. Investment in the energy transition amounted to US $1.7 trillion[1] in 2023 – highlighting the pace and scale at which clean energy technologies are being deployed. Demand for electricity is set to double between 2022 and 2050. By 2050 there will be six times more installed global capacity on the grid from renewable energy sources. The market is now starting to see traction from governmental decarbonization investment programs and supportive regulatory frameworks like the EU Wind Package. This, coupled with the arrival of decarbonization targets in new and emerging markets, is boosting future market prospects for Siemens Energy with its energy technology portfolio that supports the entire value chain.
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