Siemens Energy Posts Wider Loss For Q3, But Revenue Climbs; Cuts Annual Outlook

Siemens Energy AG (SMEGF.PK SMNEY.PK) on Monday reported a wider loss for the third-quarter, amidst an increase in cost of sales and charges at Siemens Gamesa. However, the company posted a rise in revenue. In addition, the company has revised down its full year 2023 guidance.

For the three-month period to June 30, the company registered a net loss of 2.931 billion euros or 3.42 euros per share, compared with 564 million euros or 0.58 euros per share in loss, recorded for the same period of previous year. Pre-tax loss stood at 2.187 billion euros as against last year’s 572 million euros in loss.

Loss before special items of Siemens Energy was at 2.048 billion euros, compared with previous year’s 222 million euros in loss.

Siemens Gamesa recorded charges of 2.2 billion euros for the period, which included 1.6 billion euros related to quality issues of certain onshore platforms. The other charges mainly include increased product costs and ramp-up challenges in the offshore business.

Operating loss was at 2.155 billion euros, versus 577 million euros a year ago.

Cost of sales moved up to 8.677 billion euros from 6.836 billion euros of 2022.

The German company registered an improvement in revenue at 7.506 billion euros from previous year’s 7.280 billion euros.

Citing the developments at Siemens Gamesa, for full year 2023, Siemens Energy now expects its net loss to be around 4.5 billion euros against its previous expectation to exceed prior fiscal year’s level of 712 million euros by up to a low-triple-digit million euro amount.

The Group now projects a profit margin before special items between negative 10 percent and negative 8 percent against previous forecast for around the low end of the range of positive 1 percent to positive 3 percent.

Siemens Energy anticipates comparable revenue growth to be in a range of 9 percent to 11 percent, lesser than its previous outlook of 10 percent to 12 percent.

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