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Continuing constraints in global supply chains carried on affecting the business of Siemens Energy, predominantly at Siemens Gamesa Renewable Energy (SGRE), where difficult supply markets amplified the
impacts rooting in continued operational problems. As a result, SGRE reported an Adjusted EBITA of negative €301m for the second quarter.
- The consequences of the war in Ukraine led to initial minor negative effects on the second quarter results
of Siemens Energy.
- Solid orders of €7.9bn included a strong contribution from Gas and Power (GP), resulting in the order
backlog climbing to a record of €89.3bn. Compared to the exceptional high prior-year figure, orders came
in 27.5% lower for the quarter on a comparable basis (excluding currency translation and portfolio effects).
- Revenue of €6.6m was slightly down by 1.7% on a comparable basis, as moderate growth at GP was more
than offset by a decline at SGRE.
- Adjusted EBITA for Siemens Energy was negative €77m (Q2 FY 2021: positive €197m) due to the loss at
SGRE. In contrast, GP substantially increased its Adjusted EBITA year-over-year. Adjusted EBITA before special items of Siemens Energy was negative €21m compared to positive €288m in prior-year quarter.
- Siemens Energy’s net loss amounted to €252m (Q2 FY 2021: net income of €31m). Corresponding basic
earnings per share (EPS) were negative €0.22 (Q2 FY 2021: positive €0.03).
- Free cash flow pre tax sharply decreased to negative €351m (Q2 FY 2021: positive €433m) driven by the
earnings decline at SGRE while GP delivered a positive contribution.
- Given SGRE’s adjusted aspiration for fiscal year 2022 and in light of prevailing challenges, management
now expects for Siemens Energy for fiscal year 2022 results towards the low end of the guidance ranges
for comparable revenue development (negative 2% to positive 3%) and Adjusted EBITA margin before
special items (positive 2% to positive 4%).
- Management notes an increasingly challenging environment and growing uncertainty with regards to
the continuation and economic burdens of the war in Ukraine as well as the COVID-19 situation in China
and cannot rule out further negative effects associated to an escalation of these factors.
Christian Bruch, President and Chief Executive Officer of Siemens Energy AG:
“Gas and Power delivered a solid performance this quarter. The segment delivered a solid operating result
and a strong order intake despite first impacts of the sanctions against Russia and increasing supply chains
constraints. Disappointing again is the performance of SGRE which is weighing heavily on Siemens Energy.
The situation at SGRE has aggravated further since the last profit warning. As majority shareholder, we provide our expertise to get to the bottom of the problems and to tackle the issues”
- Launch of single-phase dry-type transformer for pole applications
- More reliable, durable and environmentally friendly alternative to oil-filled transformers
With CAREPOLETM Siemens Energy
launches an innovative dry-type single-phase transformer for pole applications. Designed
for the technological requirements of the American grid, the new cast-resin distribution
transformer provides a reliable and sustainable alternative to oil-filled
transformers.
- Surplus wind energy from Germany for Great Britain
- 1.4 gigawatts, supplying 1.5 million homes
- Saving of 16 million tons of CO2
Siemens Energy and the NeuConnect
consortium have signed a contract for the supply of a turnkey High-Voltage
Direct Current (HVDC) transmission system for the first power link between Great
Britain and Germany (“NeuConnect Interconnector”). The HVDC link will connect
two of Europe's largest energy markets and enable up to 1.4 gigawatts of
electricity to be exchanged in both directions, enough to power up to 1.5
million homes. Access to a more diverse and sustainable energy mix will
increase security of supply in both countries. Through the more efficient use
of renewable energy, the connection will result in savings of up to 16 million
tons of CO2 emissions. The order value for Siemens Energy is in the
high three-digit million euro range and will be booked for the current fiscal
year.
- Industrial-scale production of electrolyzers
for green hydrogen
- In 2023 start of the first Gigawatt production
at the multi-Gigawatt factory
Siemens Energy will
locate the industrial production of electrolysis modules in Berlin and is thus
taking the centerpiece of its hydrogen technology to the capital. Start of
production at the location Huttenstrasse in Berlin’s Moabit locality is
scheduled for 2023. At this site the complete infrastructure of an existing production
hall can be used. New production lines for the electrolyzers are being set up
on 2,000 square meters at a cost of around 30 million euros. Today, the site
mainly manufactures gas turbines, which are among the most powerful and
efficient in the world. These can already be operated with up to 50 percent
hydrogen, and by 2030 complete hydrogen operation should be possible. Siemens
Energy is now pooling its expertise in both these areas in Berlin to ensure a
reliable and successful energy transition to a new energy mix. This also
includes the business field of energy transmission: At the Siemens Energy Switchgear
Plant Berlin innovative high voltage products are manufactured, ensuring that
electricity reaches consumers reliably.
- 100th H-class gas turbine sold worldwide
- Four advanced combined cycle power units support
a sustainable energy supply in a major economic area
Siemens Energy has recently entered into agreements separately
with Guangdong Energy Group Co., Ltd. and Shenzhen Energy Group Co., Ltd. to
deliver a total of four H-class combined cycle power units to their power
plants located in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) in southern
China. Upon completion, the new and updated power plants will help meet the
growing power demand in the region with efficient and future-proof power
generation technologies. In addition, with the one-hundredth unit sold, the
projects also mark a milestone in the success story of the SGT-8000H gas
turbine.
- Starting point into CO2-neutral
shipping in large-scale
- Siemens Energy will implement an electrolyzer plant
in the 50 megawatt range
- European Energy will be responsible for
utilizing the electrolyzer in Aabenraa in the Southern part of Denmark.
Siemens Energy secured an order from European Energy for
the delivery of an electrolyzer plant. The Danish developer and operator of
green energy projects is developing the world´s first large-scale commercial e-Methanol
production facility with the hydrogen being provided by a 50 mega-watt (MW)
electrolyzer plant by Siemens Energy. The plan is that the plant will be built in Kassø, located west of Aabenraa in the South of Denmark, near the German border. Through
the nearby 300 MW solar park of Kassø, developed by European Energy, the
project will have access to the low-cost renewable electricity needed to
produce cost-effective e-Fuel. End users
of the e-Methanol will be the shipping company Maersk and the fuel retailer Circle
K among others. The project secures the e-Methanol supply for Maersk`s first e-Methanol
driven container vessel, and thus demarks the starting point into CO2-neutral
shipping in large-scale. Start of commercial methanol production is planned for
second half of 2023.
- Joint venture with ZEISS and financial/venture
capital investors
- Extended use of on-demand additive manufacturing
for prototypes as along with a spare-part supply
Additive manufacturing (AM) has taken on a major role in
the development and production of components and spare parts for Siemens Energy
in recent years. In addition to setting up its own AM production lines and
acquiring AM service provider Materials Solutions in 2016, the company is now
expanding its commitment in this area with its investment in the start-up
MakerVerse.