The German energy company Siemens Energy reported a loss of €2.9 billion in the third quarter of its fiscal year on Monday, marking the largest loss since its establishment in 2020 as a subsidiary of the German industrial manufacturer Siemens.
The disappointing results were primarily influenced by the costs of the wind turbine subsidiary Siemens Gamesa and the associated negative tax effects.
Siemens Energy’s revenue increased by eight percent in the second quarter of this year, reaching €7.5 billion. The company now expects a record loss of €4.5 billion in its fiscal year, which runs until the end of September.
Persistent Deficit
In June, Siemens Energy withdrew its earlier guidance for business results this year, warning that it had identified issues in parts of the wind farms.
Most of the problems were detected in the onshore wind farms of 108 gigawatts, including blades and bearings, which could cause significant damage to the company. The company has now announced that it expects €1.6 billion in costs for repairs and replacements of the identified defects in the onshore wind turbines it manufactured and delivered.
CEO Christian Bruch stated that the results indicate the challenges they faced in returning Siemens Gamesa’s business to profitability.
– A strong performance in our other business areas gives me confidence in our company’s ability to restore operations on solid foundations – said Bruch.
Siemens Energy was spun off from Siemens three years ago and was listed on the stock exchange. Since then, the group has not completed any fiscal year in the black.
