The future of Siemens Energy is currently at stake, with considerable financial stakes. A leading investor, Ingo Speich of Deka Investment, has expressed concern about the possibility of order cancellations or major delays if guarantees are not put in place. He estimates that up to €15 billion in guarantees would be needed to secure Siemens Energy’s projects.
Turbulence in the Renewable Energy Sector
This comes against a backdrop of growing turbulence in the renewable energies sector. Recently, the Danish company Orsted announced the suspension of two wind farm projects in the USA, illustrating the problems that are also affecting Siemens Energy, the world’s leading manufacturer of offshore turbines.
Siemens Energy is currently seeking guarantees for the performance bonds needed to secure its order book of 109 billion euros, mainly in the fields of transmission networks and gas turbines.
Confidence in Siemens Energy at Risk
Ingo Speich points out that Siemens Energy has no liquidity problems, which would make a capital increase unnecessary for the time being. However, discussions concerning the guarantees caused the Group’s shares to fall last week to a record low. This follows problems at the Siemens Gamesa wind turbine division, which Siemens Energy fully acquired this year.
Speich adds that confidence in Siemens Energy’s management was shaken by Gamesa’s problems, which came to light only a few weeks after the company was taken over. He believes that the Board of Directors needs to win back the confidence of investors.
For the time being, there have been no major changes in Siemens Energy’s management in response to the crisis, and Speich believes that a discussion on this subject would be premature. However, he points out that the Gamesa acquisition casts a negative light on Siemens Energy’s board of directors. Part of the responsibility also lies with Siemens AG, the former parent company of Siemens Energy, which still holds a direct 25.1% stake.
An Uncertain Future
Siemens Energy’s future remains uncertain as negotiations to secure crucial guarantees continue. The financial stakes are considerable, and it is essential that agreements are reached to preserve the company’s activity.
Siemens Energy’s situation highlights the challenges facing energy companies in a world in transition. The need for large-scale guarantees underlines the importance of financial stability for the continuation of renewable energy projects. The outcome of these negotiations will largely determine the future of Siemens Energy in an ever-changing industry.
