Siemens Energy’s announce earnings for third quarter 2023
London, 07 August, 2023, (Oilandgaspress) – Siemens Energy continues to benefit from a favorable market environment. Orders of €14.9 billion reflected a like-for-like growth (excluding currency translation and portfolio effects) of 54.2%, driven primarily by large orders at Siemens Gamesa and Grid Technologies (GT). The book-to-bill ratio (ratio of order intake to sales) was 1.98. The order backlog thus reached a new record value of €109.0 billion.
Revenue increased on a comparable basis by 8.0% to EUR 7.5 billion.
The clean result of Siemens Energy was minus €2,048 million (Q3 FY 2022: minus €222 million), mainly due to the aforementioned charges at Siemens Gamesa totaling €2.2 billion. Gas Services (GS), GT and Transformation of Industry (TI) clean income increased very strongly year-on-year as a result of strong operational performance.
Special items declined to minus €41 million (Q3 FY 2022: minus €259 million) as significant Russia-related charges were recorded in the prior-year quarter. The result of Siemens Energy was negative at €2,089 million (Q3 FY 2022: minus €481 million).
Siemens Energy reported a loss after tax of €2,931 million (Q3 FY 2022: loss after tax €564 million). This included negative tax effects from the impairment of deferred tax assets in connection with the charges at Siemens Gamesa. The corresponding basic earnings per share were minus €3.42 (Q3 FY 2022: minus €0.58).
Free cash flow before taxes improved to plus €27 million after minus €25 million in the prior-year quarter.
Against the background of the developments at Siemens Gamesa, the Management Board has adjusted the outlook for Siemens Energy. Due to the aforementioned challenges at Siemens Gamesa, the Siemens Energy Group now expects comparable growth in sales in a range of 9% to 11%, a profit margin before special items of between minus 10% and minus 8% and a loss after taxes expected to be around €4.5 billion. The free cash flow before taxes is now expected to be in the negative range up to a low three-digit million euro amount. The Management Board confirms its revenue and earnings margin assumptions for the GS, GT and TI segments.
outlook
The general assumptions for the GS, GT and TI segments for the financial year 2023 remain unchanged as follows:
GS plans to achieve comparable revenue growth (excluding currency translation and portfolio effects) of 10% to 12% and a clean earnings margin of between 9% and 11%.
GT plans to achieve comparable revenue growth of 12% to 14% and a clean earnings margin of between 6% and 8%.
TI plans to achieve comparable revenue growth of 8% to 10% and a clean earnings margin of between 3% and 5%.
Siemens Gamesa adjusted its revenue and earnings assumptions for fiscal year 2023 and is now assuming comparable revenue growth of minus 3% to 0% (previously plus 6% to plus 10%) and negative earnings before special items of around 4 €.3 billion. In addition to the charges already mentioned, the assumptions for Siemens Gamesa reflect lower earnings contributions from the execution of the current order backlog mainly due to increased product costs and continued challenges in the ramp-up of the offshore activities.
Information Source: Read More
Energy Monitors , Electric Power , Natural Gas , Oil , Climate , Renewable , Wind , Transition , LPG , Solar , Electric , Biomass , Sustainability , Oil Price , Electric Vehicles,
