Shares of Siemens Energy AG were losing around 5 percent in German trading after the energy development company reported Tuesday wider net loss in its first quarter and adjusted fiscal 2023 forecast to now expect net loss same as the prior year, due to certain charges at Siemens Gamesa Renewable Energy.
Revenues and orders for the quarter, however, climbed and the company maintained its fiscal 2023 revenue forecast.
Christian Bruch, President and CEO of Siemens Energy, said, “Our order growth demonstrates that we have the right portfolio to capitalize on the energy transition. Notwithstanding the charges at Siemens Gamesa, Jochen Eickholt and his team are making progress in improving the sustainability of the company. The intended delisting of Siemens Gamesa will further support the team to focus on solving the operational problems and the turnaround.”
For fiscal 2023, the company said it had to adjust earnings and margin forecast due to charges at Siemens Gamesa Renewable Energy or SGRE, whose management no longer expects its profitability to be in line with its business plan.
Net loss for the year is now expected to be on prior fiscal year’s reported level. Previously, the company was projecting a sharp reduction of net loss compared to fiscal year 2022.
Siemens Energy now expects profit margin before special items between 1 percent and 3 percent, compared to previously expected range of 2 percent to 4 percent.
Further, Siemens Energy continues to expect comparable revenue growth, excluding currency translation and portfolio effects, in a range of 3 percent to 7 percent.
In the first quarter, net loss widened to 598 million euros from last year’s loss of 246 million euros. Basic loss per share was 0.60 euro, compared to loss of 0.18 euro a year ago.
Loss before special items was 282 million euros, compared to loss of 69 million euros last year.
Revenue, however, grew 18.6 percent to 7.06 billion euros from last year’s 5.96 billion euros. Revenue grew 16 percent on a comparable basis. All segments contributed to the growth.
Orders were 12.73 billion euros, up 52.8 percent from 8.33 billion euros last year. Orders climbed 49.2 percent on a comparable basis.
The company noted that the continued strong order development with sharp growth year-over-year was primarily driven by the large GT grid connection order in Germany and strong demand in the USA. Overall, volume from large orders sharply increased from last year.
Order backlog was 98.8 billion euros, up 13.4 percent from last year’s 87 billion euros.
In Germany, Siemens Energy shares were trading at 17.76 euros, down 4.67 percent.
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