Siemens Energy reports “solid performance” for Gas and Power

Siemens Energy announced its results for the first quarter of fiscal year 2022 that ended Dec. 31, 2021. And a significant takeaway is that for all of the promise of renewable energy, as a business it’s sometimes hard to turn a profit.

The company reported a net loss of €240 million, mostly because of a lackluster performance from the Siemens Gamesa Renewable Energy (SGRE) business, driven in part by supply chain issues, the company said. Meanwhile, Siemens Gas and Power saw orders grow 14% and while revenue dipped 3.6%, the quarter ended with a record order backlog of €53.6 billion, Siemens Energy reported.

Siemens Energy reported strong first quarter order intake for its Gas and Power division. (Photo: Siemens)

“The solid performance of Gas and Power shows that we make progress with our transformation,” said says Christian Bruch, president and CEO of Siemens Energy AG. “Our measures have started to have an impact, and the results are heading in the right direction.

“However, the latest profit warning at Siemens Gamesa Renewable Energy is a setback and disappointing for all shareholders. As majority shareholder, we will continue to support SGRE in achieving the turnaround in the onshore business even in a difficult market environment.”

Siemens Energy said that continuing constraints in global supply chains cause challenges in the business. While operational performance at Gas and Power was solid, Siemens said SGRE was impacted harder than expected by difficult supply markets and faced project-related and technical challenges.

Both segments contributed to a strong quarter for order intake at €8.3 billion up 10.1% on a comparable basis and overall order backlog was a record €87.1 billion.

Revenue was €6.0 billion down 11.4% from the same period last year.

Siemens Energy said it is adjusting its expectations for the remainder of the fiscal year, forecasting revenues to be in a range of negative 2% to positive 3%. Previous guidance called for negative 1% to positive 3%. The outlook for the Gas and Power segment for fiscal year 2022 is unchanged, as the company is targeting revenue growth to be in a range of 1% to 5%.