- Press Releases
August 8 (Renewables Now) - Siemens Energy AG (ETR:ENR) today said it is keeping its tentative timeline for the plan to buy out and delist Siemens Gamesa Renewable Energy SA (BME:SGRE) at the same time as it reported that the wind turbine maker’s “unsatisfactory” performance dragged the German company down into a deeper quarterly loss.
As announced in May, Siemens Energy is getting ready to launch a voluntary cash tender offer of EUR 18.05 (USD 18.47) per SGRE share in cash to acquire the 32.9% interest it does not already own in Siemens Gamesa. Subject to clearance from the Spanish securities market commission CNMV, which is expected after the summer holidays, the Munich-based company will kick off the tender bid in mid-September as shown in the table below.
|Mid-September||Public offer launch|
|Acceptance period of 4-5 weeks|
|October||Announcement of tender results|
|November||SGRE delisting approval at EGM|
|By end of CY 2022||Transaction completion|
Also on Tuesday, Siemens Energy posted a net loss of EUR 533 million for its fiscal third quarter through June 2022, compared with a loss of EUR 307 million a year back.
Regardless of growth in the Gas and Power (GP) segment, Siemens Energy’s revenue in April-June 2022 went down 4.7% on a comparable basis to EUR 7.3 billion because of a decline at Siemens Gamesa driven by continued challenges and supply chain constraints. The high loss at the Spain-based wind turbine maker coupled with the restructuring of Siemens Energy’s business in Russia, resulted in a negative adjusted EBITA of EUR 429 million compared with a negative EUR 124 million in the same period of 2021.
Siemens Energy’s president and CEO Christian Bruch commented on SGRE’s performance in the following way: “Siemens Gamesa continued to experience high losses in a challenging market environment. The poor performance at Siemens Gamesa had a negative impact on our overall results. We expect the new management at Siemens Gamesa now to implement a rigorous turnaround plan.”
The management team of Siemens Energy continues to expect that the company will achieve its outlook, but towards the low end of the guidance ranges for comparable revenue development and adjusted EBITA margin before special items. Its fiscal-year net loss is now seen to “exceed prior year’s net loss approximately by the impact from the restructuring of business in Russia reported as special item.”
At Siemens Gamesa, the comparable revenue decline for the full fiscal year is now expected to be closer to 9%, which is the low end of the previous target range of negative 9%-2%.
(EUR 1 = USD 1.023)