London, 08 May 2024, (Oilandgaspress): – Revenue grew by 3.7% on a comparable basis to €8.3bn with substantial and significant growth at Grid Technologies and Transformation of Industry, respectively.
Highlights:
During the second quarter of the fiscal year, Siemens Energy’s relevant markets and demand for electricity continued to develop strongly.
As expected, orders decreased year-over-year from a high level of comparison mainly due to a lower volume of large orders. Growth at Grid Technologies and Transformation of Industry could not offset lower orders in the other segments, mainly Siemens Gamesa. Overall, the decline was 21.8% on a comparable basis (excluding currency translation and portfolio effects) and orders came in with €9.5bn. The book-to-bill ratio (ratio of orders to revenue) was again above 1, driving the order backlog to a new high of €119bn.
Siemens Energy’s Profit before special items sharply increased to €170m (Q2 FY 2023: €41m) in part benefiting from positive currency effects. Special items amounted to positive €331m (Q2 FY 2023: positive €23m), driven by pre-tax gains from the sale of businesses related to the ongoing progress on disposals and accelerated portfolio transformation. As a result, Profit for Siemens Energy came in at €501m (Q2 FY 2023: €64m).
Siemens Energy reported a Net income of €108m (Q2 FY 2023: Net loss €189m). Corresponding basic earnings per share (EPS) were positive €0.08 (Q2 FY 2023: negative €0.25).
Free cash flow pre tax was positive with €483m (Q2 FY 2023: negative €294m). The improvement to prior-year quarter was primarily due to strong cash conversion across all business areas and shifts in timing from Siemens Gamesa.
Due to the strong business performance in the first half-year, Siemens Energy raised its outlook for fiscal year 2024. Management now expects for the Siemens Energy Group a comparable revenue growth between 10% and 12% (previously between 3% and 7%) and a Profit margin before special items between negative 1% and positive 1% (previously between negative 2% and positive 1%). Free cash flow pre tax is now expected to be up to positive €1.0bn (previously around negative €1.0bn). The outlook for Siemens Energy’s Net income remains unchanged at up to €1bn.
“Our strong development in the second quarter underscores the continued strong demand for our technology to power the energy transition and our success in stabilizing the wind business. We have raised our outlook to reflect this positive development. The turnaround of our wind business is still our focus. To this end, we are taking steps to reduce complexity and create a more focused business.” –Christian Bruch, President and CEO of Siemens Energy AG:
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a comment on Siemens Energy following this morning’s earnings release from Matthew Donen, Equity Analyst, Morningstar:
“Siemens Energy shares were up 12% higher at market open off the back of a positive set of second quarter results released this morning. The energy company upgraded its revenue guidance for fiscal year 2024 by 6% at the midpoint compared to its initial guidance, and comfortably ahead of consensus expectations.
“The largest revenue upgrades were for its divisions which are beneficiaries of the energy transition (Grid Technologies and Siemens Gamesa). In addition, free cash flow guidance was upgraded from a EUR 1 billion outflow to a EUR 1 billion inflow, helping to alleviate concerns over the group’s liquidity. Of particular note to investors is the turnaround at the company’s troubled wind turbine division. Siemens Gamesa announced it is progressing with further job cuts and replacing current divisional CEO Jochen Eickholt who has been in the role since 2022 in an attempt to achieve its 2026 break even target.” Source:
