Siemens Energy and its Spanish subsidiary Gamesa: Net loss of almost three billion euros in the 3rd quarter

Siemens Energy reported a net loss of nearly €3 billion in the third quarter, primarily due to significant problems at its Spanish wind energy subsidiary, Gamesa. The company now expects a total loss of approximately €4.5 billion for the current fiscal year, with Gamesa accounting for around €4.3 billion of that. Siemens Energy will conduct a strategic review of its wind business and provide further details at a Capital Markets Day in November.

Quality problems with onshore wind turbines

Siemens Energy's problems stem from quality issues with onshore wind turbines, which have resulted in additional costs exceeding €1 billion. Repairs to certain rotor blades and main bearings, in particular, are estimated at a total of €1.6 billion. Higher material and procurement costs for offshore wind turbines will further strain the company's finances.

Quality problems with the wind turbines have posed significant challenges for Siemens Energy. These problems affect not only the company's financial performance but also its reputation and credibility in the market. Customers have expressed concerns about the turbines' reliability, leading to a decline in orders.

Furthermore, media coverage of the quality issues has led to a negative image problem. Potential investors and business partners may now be hesitant to collaborate with Siemens Energy, which could negatively impact future projects.

Discussions in the Supervisory Board

The problems in the renewable energy sector have led to intensive discussions within the supervisory board. The management team and the executive board have addressed the challenges and discussed potential solutions. Some members of the supervisory board have suggested that personnel changes might be necessary to get the company back on track. However, no final decisions regarding such changes have been made at this time.

Gamesa: Mainly responsible for the loss

Of the total loss, approximately €4.3 billion is attributable to Gamesa. The Spanish subsidiary is facing significant challenges that have put the company in a difficult position. The announced strategic review of the wind energy business aims to address Gamesa's problems and achieve a successful turnaround.

Outlook despite challenges

Despite the challenges, Siemens Energy remains confident in its ability to successfully restructure Gamesa's operations. The company recognizes that this will be a demanding process, but is determined to take the necessary steps to improve Gamesa's performance and return its wind business to profitability.

Strategic realignment in the wind energy business

To overcome the problems at Gamesa and ensure the long-term competitiveness of its wind energy business, Siemens Energy is planning a strategic realignment. This realignment is intended not only to address current challenges but also to create long-term prospects for growth and innovation.

Capital Markets Day in November

At its Capital Markets Day in November, Siemens Energy will provide detailed insights into its planned realignment. Investors and stakeholders can look forward to comprehensive information on the future of the wind energy business. Open communication and transparency towards stakeholders are of paramount importance to Siemens Energy.

Reorientation of the wind energy business

Siemens Energy is currently facing significant challenges due to the problems at its subsidiary Gamesa. The strategic review and realignment of its wind energy business are crucial steps to putting the company back on a path to success. Despite the current losses, Siemens Energy is confident that it can overcome these challenges and secure the company's long-term competitiveness. Investors and stakeholders are eager to see what specific measures the company will present at its Capital Markets Day in November.

Siemens Energy and Gamesa are two well-known companies specializing in different areas of the energy sector. They have joined forces to take a leading role in the global energy transition.

Siemens Energy: A pillar of the energy industry

Siemens Energy is a leading company in the field of energy generation, transmission, and distribution. It was established in 2020 as an independent company through the spin-off of the energy technology business from Siemens AG. With a long history and extensive experience in the energy sector, Siemens Energy is a significant player in the global market.

Renewable energy

Siemens Energy is a pioneer in the development and manufacture of wind turbines, solar power plants, and hydropower plants. Through its subsidiary Siemens Gamesa Renewable Energy, the company is particularly well-known for its wind turbines.

Conventional energy technology

In addition to renewable energies, Siemens Energy is also a leader in the production of gas turbines and steam turbines for traditional power plants.

Digitalization and automation

The company is increasingly focusing on digitalization and automation to increase the efficiency and performance of its energy plants and to optimize operations.

Gamesa: A pioneer in the wind energy industry

Gamesa, a Spanish subsidiary of Siemens Energy, specializes in the manufacture of wind turbines and is considered one of the world's leading manufacturers in this field.

History and experience

Gamesa was founded in 1976 and has become an industry pioneer over the years. In 2016, it merged with Siemens Wind Power, creating Siemens Gamesa Renewable Energy.

Wind turbines

Gamesa produces a wide range of wind turbines, including onshore and offshore turbines. These turbines are characterized by high efficiency and reliable performance.

sustainability

Gamesa pursues a sustainable production strategy and strives to reduce its own environmental impact and help its customers generate sustainable energy.

Shared goals and synergies

The merger of Siemens Wind Power and Gamesa to create Siemens Gamesa Renewable Energy has led to diverse synergies and strengthened the company's competitiveness.

Global presence

Through the merger, Siemens Energy and Gamesa have expanded their global presence and are able to offer their products and services worldwide.

Technological innovation

The combined expertise of the two companies has led to significant technological innovations in the wind energy sector, such as more powerful and efficient wind turbines.

Contribution to the energy transition

Siemens Gamesa Renewable Energy's products make a significant contribution to promoting renewable energies and reducing CO₂ emissions, thus making a positive contribution to the global energy transition.

News and recent developments

In 2023, Siemens Gamesa Renewable Energy continued to make significant progress in the industry.

Record-breaking turbines

The company has unveiled a new generation of wind turbines that are even more powerful and efficient than their predecessors. These turbines will help to further reduce the cost of wind energy generation and increase energy yield.

Offshore wind farms

Siemens Gamesa Renewable Energy has won several major offshore wind farm projects. These projects will increase offshore wind energy capacity and contribute to achieving energy targets in the respective regions.

Hydrogen initiatives

Siemens Gamesa Renewable Energy has intensified its efforts to combine wind energy with hydrogen technology. Hydrogen can serve as a clean energy carrier and contribute to the decarbonization of other sectors, such as industry.

Expertise in renewable energies and conventional energy technology

Siemens Energy and its subsidiary Gamesa are influential players in the global energy transition. Their expertise in renewable energies and conventional energy technologies, coupled with their capacity for innovation, has made them key drivers of sustainability. With new record-breaking turbines, offshore projects, and hydrogen initiatives, they are expected to continue playing a central role in the transition to a clean and sustainable energy future.

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