Q4 shows positive earnings before special items
Compared with the strong equivalent quarter last year, which benefited from new orders at both Gas and Power and SGRE, Siemens Energy achieved a solid fourth quarter in 2020. As anticipated, new orders decreased 24% to EUR 7 billion, primarily as orders were postponed due to COVID-19 in the Gas and Power segment.
Siemens Energy’s revenue decreased by 8% to €7.6 billion in the fourth quarter, which was impacted primarily by an 11% decline in revenue in the Gas and Power segment. This was attributable to delays and postponed projects mainly due to the COVID-19 pandemic. In contrast, the downturn in revenue in the SGRE segment was moderate.
Siemens Energy reported adjusted EBITA before special items of EUR 70 million in the fourth quarter, equivalent to an adjusted EBITA margin of 0.9% before special items. Without special items of EUR 402 million Q4 results would have been very strong and in line with previous year. Operational weaknesses in the onshore business at SGRE continue to negatively impact Q4 adjusted EBITA before special items. In total, the net loss at Siemens Energy Group level stood at EUR 390 million. This was set against strong free cash flow before taxes, in an amount of EUR 704 million.
Maria Ferraro, CFO of Siemens Energy:
“In a market environment that remains challenging and uncertain, Siemens Energy delivered a solid fourth quarter. Both at the Group level and in the Gas and Power and SGRE segments, we showed an operating profit before special items. We continue to diligently focus on the tasks at hand, specifically reviewing all levers to improve our cost efficiency which increase profitability and cash flow. It is a journey, although we see progress so far and are on the right track.”