Siemens GP segment off to ‘solid start’ in ’22

Siemens Energy’s Gas and Power segment (GP) had a “very solid start” to the 2022 fiscal year, the company announced.

The segment had an order intake of €5.890 million, compared to €5.166 million in the first quarter of 2021, an increase of 11.7%. Revenue, however, was down 5.9%: €4.140 million in 2022 compared to: €4.292 million in 2021, according to preliminary figures.

Management still believes that the Gas and Power segment will grow in fiscal year 2022 anywhere from 1% to 5% and an adjusted earnings before interest, taxes, and amortization (EBITA) margin before special items between 4.5% and 6.5%. Expectations for fiscal year 2023 are even higher, with adjusted EBITA margin expected to grow between 6% to 8%.

Siemens HQ

Siemens Gamesa Renewable Energy, a subsidiary of Siemens Energy, was hurt by supply chain disruptions, which the company expects “to last longer than previously anticipated,” the company announced in a news release.

“Incorporating SGRE’s new guidance for fiscal year 2022 Siemens Energy AG’s management expects for Siemens Energy group a comparable revenue development (excluding currency translation and portfolio effects) to be in a range of neg. 2% to pos. 3% versus neg. 1% to pos. 3% previously and an Adjusted EBITA margin before special items of pos. 2% to pos. 4% versus pos. 3% to pos. 5% previously. Management will reassess its expectations for Siemens Energy group’s Adjusted EBITA margin before special items for fiscal year 2023 (previously pos. 6.5% to pos. 8.5%).

For the first quarter of fiscal year 2022 the preliminary figures are:

Siemens Energy

Order intake: €8,330m (Q1 FY 2021: €7,432m; consensus €7,585m), up 10.1% comparable

Revenue: €5,956m (Q1 FY 2021: €6,541m; consensus: €6,311m), down 11.4% comparable

Adjusted EBITA: neg. €57m (Q1 FY 2021: €243m; consensus: €91m), reflecting a margin of neg. 1.0% (Q1 FY 2021: 3.7%; consensus: 1.4%)

Adjusted EBITA before Special Items: neg. €63m (Q1 FY 2021: €366m; consensus: €153m), reflecting a margin of neg. 1.1% (Q1 FY 2021: 5.6%; consensus: 2.4%)

Free cash flow pre tax: neg. €69m (Q1 FY 2021: neg. €388m)

Siemens Energy AG will publish its full earnings release for the first quarter of fiscal year 2022 on Feb. 9.