Siemens Energy AG (ETR:ENR) has announced robust performance in its second fiscal quarter ending March, coupled with a leadership transition in its wind business segment. The German energy company highlighted steady progress amid dynamic market conditions, affirming its commitment to powering the global energy transition.
"Our strong development in the second quarter underscores the continued strong demand for our technology to power the energy transition and our success in stabilizing the wind business," stated Christian Bruch, President and CEO of Siemens Energy.
The wind business division, Siemens Gamesa, faced anticipated challenges in Q2, including a decline in orders attributable to temporary disruptions in onshore sales for the 4.X and 5.X turbines. Moreover, the absence of significant offshore and service orders from the previous year contributed to the downturn. Despite these headwinds, Siemens Gamesa remains focused on addressing quality issues, managing project margins, and navigating ramp-up challenges in the offshore segment.
Key figures for Siemens Gamesa in Q2 FY 2024 compared to Q2 FY 2023:
- Orders: EUR 881 million (Q2 FY 2024) vs. EUR 3,643 million (Q2 FY 2023)
- Revenue: EUR 2,314 million (Q2 FY 2024) vs. EUR 2,438 million (Q2 FY 2023)
- Profit: EUR (365) million (Q2 FY 2024) vs. EUR (386) million (Q2 FY 2023)
- Profit before special items: EUR (448) million (Q2 FY 2024) vs. EUR (374) million (Q2 FY 2023)
At the group level, Siemens Energy achieved a net profit of EUR 108 million (USD 116 million) in the quarter, prompting an upward revision of its fiscal year 2024 outlook. The company now anticipates comparable revenue growth between 10% and 12%, up from the previous range of 3%-7%. Additionally, the profit margin before special items is projected to range between negative 1% and positive 1%, compared to the prior forecast. Free cash flow pre-tax is expected to reach up to positive EUR 1 billion, with the net income forecast remaining at up to EUR 1 billion.
Looking ahead, Siemens Gamesa foresees a substantial revenue surge in the second half of the fiscal year, primarily driven by the offshore segment's ramp-up efforts.
Source: Renewables Now