Thursday, July 7

Siemens Energy sees ‘need for action’ in turbine unit takeover plan


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MADRID — Siemens Energy does not yet see signs of a recovery at wind turbine maker Siemens Gamesa, its chief executive said on Monday after launching a bid for minority holdings in the struggling unit.

Siemens Energy announced the bid on Saturday after facing pressure from shareholders to raise its stake in Siemens Gamesa from the 67% it inherited after a spin-off former parent Siemens .

Siemens Gamesa said in a statement on Sunday it would review the terms of the offer and take on legal and financial advisers.

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“There are not yet clear signs of a near-term recovery in the current setup,” Siemens Energy Chief Executive Christian Bruch said, adding that Siemens Gamesa’s financial performance was “really creating the need for action.”

Dogged by product delays and operational problems, Siemens Gamesa has issued three profit warnings in less than a year.

The bid for 18.05 euros per share represents a premium of 27.7% over the Spanish-listed stock’s last unaffected closing price on May 17, and a 7.8% premium to Friday’s closing price.

Asked about the onshore turbine business which has caused particular headaches, Bruch told analysts on a conference call: “There is no reason why you cannot be successful in onshore business if you fix your operational issues.”

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European turbine makers have racked up losses in a fiercely competitive market as metals and logistics prices were propelled ever higher by COVID-19, import duties and Russia’s invasion of Ukraine.

“I don’t believe that the supply chain environment will get easier,” Bruch said, increasing the need to “push for operational excellence everywhere as fast as possible.”

He said that, by pooling suppliers, “we can leverage the double-digit billion procurement volume we have as a total group as best we can.”

Working to produce hydrogen from wind power, a technology seen as a promising way to reduce planet-warming carbon emissions from industry, could also be more effective under the new setup, he said. (Reporting by Isla Binnie; Editing by Christian Schmollinger and Edmund Blair)



financialpost.com