Offshore wind powerhouse Siemens Gamesa sees its value nearly halve in a year

Siemens Gamesa Renewable Vitality has reduce its steering for the approaching yr after a turbulent interval that has seen its market capitalization practically halve.

The wind turbine producer on Thursday stated it continued to be “challenged by market dynamics,” as provide chain disruptions weighed on outcomes.

Between October and December 2021, the corporate stated income fell to 1.83 billion euros (round $2.06 billion) — a year-on-year decline of 20.3%. The Spain-headquartered agency additionally reported an working lack of 309 million euros and a web loss attributable to shareholders of 403 million euros.

Efficiency had been affected by provide chain disruptions in manufacturing alongside challenges in mission execution and its onshore section, it stated.

“Contemplating the leads to Q1 FY22 and the truth that the corporate doesn’t count on provide situations to normalize within the the rest of the yr, Siemens Gamesa has adjusted its steering for FY22,” the corporate added.

It now expects income to shrink by between 9% and a pair of% year-over-year (it beforehand noticed a contraction of between 7% and a pair of%).

The outcomes come after the corporate introduced it was changing CEO Andreas Nauen with Jochen Eickholt on March 1.

Siemens Gamesa’s shares have been flat on Thursday morning, however have fallen over 45% within the final 12 months.

In consequence the corporate’s market capitalization has slid from 22.9 billion euros a yr in the past, to round 12.58 billion euros presently.

Earlier this month the corporate — which the World Wind Vitality Council stated was the world’s greatest provider of offshore generators in 2020 — stated provide chain tensions had “resulted in greater than anticipated price inflation, primarily affecting our Wind Turbine … section.”

The corporate additionally cited what it known as “risky market situations” as having “impacted a few of our prospects’ funding choices.” This had led to delays in a few of its initiatives.

Siemens Gamesa’s travails come after Danish turbine maker Vestas acknowledged that the wind vitality sector confronted a rocky highway forward as a consequence of a mess of things.

“The availability chain instability brought on by the pandemic and resulting in growing transportation and logistics prices, is predicted to proceed to affect the wind energy business all through 2022,” it stated final Wednesday.

“As well as, Vestas will expertise elevated affect from price inflation inside uncooked supplies, wind turbine parts and vitality costs.”

On Wednesday Miguel Angel López, chairman of Siemens Gamesa’s board of administrators, stated the corporate was “experiencing vital challenges in its Onshore enterprise in a really tough market.”

The corporate, he stated, had “appointed an government with a powerful observe file in managing complicated operational conditions and in efficiently turning round underperforming companies.”