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Siemens Energy compressors will be used at Occidental’s first large-scale Direct Air Capture (DAC) plant in Texas’ Permian Basin developed by 1PointFive, a subsidiary of Occidental.  The two compressor packages will enable the plant to capture up to 500,000 metric tons of CO2 per year when fully operational. The announcement was made today by Siemens Energy President and CEO Christian Bruch and Occidental President and CEO Vicki Hollub at the 41st annual CERAWeek energy conference hosted in Houston, TX, USA.

Danish energy company Ørsted is building Europe’s largest commercial production facility for carbon-neutral marine fuels in northeastern Sweden. At the heart of the FlagshipONE plant is a technology package from Siemens Energy comprising four proton exchange membrane (PEM) electrolyzers with a total capacity of 70 megawatts, as well as the plant-wide electrification and automation systems, including innovative digitalization solutions (such as the use of digital twins), and the entire power distribution and compressor systems. The plant, which is being built in the Swedish coastal town of Örnsköldsvik, will be able to produce up to 50,000 metric tons of e-methanol per year from renewable energy and biogenic carbon dioxide from 2025. As a substitute for fossil fuels, this can avoid 100,000 tons of CO2 emissions per year in shipping.

• Despite the subdued overall economic development, Siemens Energy’s market environment remained favorable. During the quarter, Grid Technologies (GT) was awarded the largest offshore grid connection order in Siemens Energy's history. The platforms will connect several offshore wind farms in the (German) North Sea to the onshore grid.
• Siemens Energy delivered strong order and revenue growth and better than expected cash flow. A strongly improved operational performance at Gas Services (GS), GT, and Transformation of Industry (TI) was more than offset by charges of €0.5bn at Siemens Gamesa Renewable Energy (SGRE). During an evaluation of the installed fleet, SGRE detected a negative development of failure rates in specific components resulting in higher warranty and service maintenance cost assumptions.
• Orders continued to be very strong. Comparable growth (excluding currency translation and portfolio effects) was 49.2% despite a high basis of comparison, resulting in orders of €12.7bn, supported by large orders especially at GT. The Book-to-bill ratio (ratio of orders to revenue) was 1.80 and the order backlog rose to €98.8bn despite material negative currency translation effects.
• Revenue came in at €7.1bn reflecting a 16.0% increase on a comparable basis. All segments contributed to this growth.
• Siemens Energy’s Profit before Special items was negative €282m (Q1 FY 2022: negative €69m) due to the charges at SGRE. GS and GT reported sharp improvements year-over-year and TI delivered a positive result. Special items were negative with €103m (Q1 FY 2022: positive €6m) mainly driven by restructuring costs at SGRE. As a result, Profit for Siemens Energy was negative €384m (Q1 FY 2022: negative €64m).
• Accordingly, Siemens Energy reported a Net loss of €598m (Q1 FY 2022: Net loss €246m). Corresponding basic earnings per share (EPS) were negative €0.60 (Q1 FY 2022: negative €0.18).
• Free cash flow pre tax was negative with €58m (Q1 FY 2022: negative €69m), mainly driven by cash outflows at SGRE. Overall, the development was better than expected, supported by advance payments from customers in relation to the strong order development.
• Due to the aforementioned charges at SGRE, Siemens Energy had to adjust its outlook for fiscal year 2023. Management now expects Siemens Energy Group’s Profit margin before Special items between 1% and 3% and Net loss of Siemens Energy Group to be on prior fiscal year’s reported level. Due to the better than expected cash flow development during the quarter, management now expects Free cash flow pre tax for fiscal year 2023 to be positive.

Christian Bruch, President and CEO of Siemens Energy AG: “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.”

Today the shareholders of Siemens Gamesa Renewable Energy, S.A. (SGRE) have approved the delisting of the company from Spanish Stock Exchanges at an Extraordinary General Meeting. 98.43% of shareholders voted today in favour of the motion to delist the company. For the company to actually be delisted, it still needs approval from the Spanish National Securities Market Commission (CNMV). 

• Consortium of Siemens Energy and Dragados Offshore will build converter systems for two offshore grid connection systems
• World's first order for 2-gigawatts grid connection at sea
• Contract represents the largest offshore grid connection order in Siemens Energy's history

In future, a single grid connection will transport up to two gigawatts (GW) of offshore wind power to the onshore power grid. This is made possible by converter systems provided by Siemens Energy and Spanish company Dragados Offshore. The German transmission system operator Amprion has awarded the world's first order for two of these systems to the consortium. In total, up to four gigawatts of green electricity from several offshore wind farms in the German North Sea can be transported to shore – enough electricity to meet the needs of about four million people. The contract for the consortium is worth a total of more than €4 billion including maintenance for ten years. For Siemens Energy it is the largest offshore grid connection order the company has received to date.