Shares reverse initial fall to stand 2.7% higher after Siemens Energy books $2.4 bln in charges on wind turbines

Record ID: 1736794

  • Title: Shares reverse initial fall to stand 2.7% higher after Siemens Energy books $2.4 bln in charges on wind turbines
  • Date: 7th August 2023
  • Summary: FRANKFURT, GERMANY (AUGUST 7, 2023) (REUTERS) DAX INDEX SCREEN OF FRANKFURT STOCK EXCHANGE AT OPENING SHOWING 15951.86 TRADER ON THE TRADING FLOOR WIDE SHOT TRADING FLOOR (SOUNDBITE) (German) TIM OECHSNER, ANALYST OF STEUBING WERTPAPIERHANDELSBANK, SAYING: "The Gamesa takeover is somewhat counteracting the positive aspects of Siemens Energy at the moment. That is why the share is in focus this morning. It opened very weak but has now turned positive and is trading at around €16, €15.75. After opening below €15 on Friday and very weak this morning, it has now turned positive.") INDEX SCREEN SHOWING SIEMENS ENERGY SHARES AT 15.555 INDEX SCREEN SHOWING DEVELOPMENT OF MOST RECENT TRADING (SOUNDBITE) (German) TIM OECHSNER, ANALYST OF STEUBING WERTPAPIERHANDELSBANK, SAYING: "The stock market is pleased that the losses have at least been quantified after it was not clear for months what the cost would be in the end. The stock market is pleased that the losses have been quantified. But of course, the losses weigh heavily, and we will see what happens to the share."
  • Embargoed: 21st August 2023 11:22
  • Keywords: SIEMENS ENERGY stock market
  • Location: FRANKFURT, GERMANY
  • City: FRANKFURT, GERMANY
  • Country: Germany
  • Topics: Europe,Economic Events
  • Reuters ID: LVA002281507082023RP1
  • Aspect Ratio: 16:9
  • Story Text: Siemens Energy shares on Monday (August 7) gained 1.1% to 15.7 euros, after having fallen as much as 7%. The German energy group said problems recently unveiled at its wind turbine unit would cost it 2.2 billion euros ($2.4 billion), well short of worst-case estimates but still casting doubt over the future of the business.
    "The stock market is pleased that at least the losses have been quantified after it was not clear for months what the cost would be in the end", said analyst of Tim Oechsner of Steubing Werttpapierhandelsbank. "The Gamesa takeover is somewhat counteracting the positive aspects of Siemens Energy at the moment. That is why the share is in focus this morning. It opened very weak, but has now turned positive and is trading at around €16," said Oechsner.
    Siemens Energy shocked markets in late June when it announced a wide set of problems at Siemens Gamesa, one of the world's biggest wind turbine makers, just weeks after it managed to fully acquire the business it formerly only partly owned. While in line with Siemens Energy's own estimate of more than 1 billion euros, Monday's cost tally for the issues is below the most pessimistic market estimate of more than 5 billion euros issued by UBS. Siemens Energy CEO Christian Bruch said that while the situation at Siemens Gamesa was a "massive setback", the performance of the group's remaining units, including gas turbines and power converter stations, provided a silver lining. The new set of problems at Siemens Gamesa, including faulty blades and gears at some of its 4.X and 5.X onshore models, have cost the company around a third, or more than 6 billion euros, in market value.
    (Production: Frank Simon, Oliver Denzer)
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