Siemens Energy replaces a billion dollar guarantee-shareholders cheer!

Siemens Energy replaces a billion dollar guarantee-shareholders cheer!

Deutschland - Siemens Energy recently returned the federal government's loss of billion dollars and thus took a significant step in the financial stabilization of the company. The return concerns a guarantee agreement of 11 billion euros, which was secured by federal reorganization. Instead, Siemens Energy has now made a new guarantee agreement of over 9 billion euros from 23 banks without government backing. This development signals a positive turn for the company, which has been fighting challenges in recent years, especially in the wind power sector. Finance chief Maria Ferraro emphasizes the federal re -guarantee as crucial for corporate growth in a difficult time, and the replacement of the guarantee is considered necessary to strengthen the balance sheet and to improve the margins and the cash flow.

The challenges for Siemens Energy were significant, especially in the wind power business, where the subsidiary Siemens Gamesa recorded high losses. Despite these difficulties, the company was able to acquire orders worth around 110 billion euros, which illustrates the need for guarantees to secure complex projects. In 2023 Siemens Energy managed to receive new orders, although sometimes massive support from the federal government was required. An aid package, which comprises a total of 15 billion euros in guarantees, was previously approved, with the federal government taking over 7.5 billion euros alone and private banks provided 12 billion euros in the form of loan commitments. However, the success of these measures depended on the financing and commitment of other stakeholders.

improved business prospects

The return of the Federal Guarantee will also have an impact on shareholders, since the company is freed from a ban on dividends that applies from the coming financial year on October 1st. There is a prospect that shareholders could get a dividend for the first time in 2027 for the first time in years, provided that the terms and conditions continue to develop positively. This increases trust in the future stability and earnings of Siemens Energy.

According to the information from Tagesschau.de Plant Siemens Energy, also to generate about 2 billion euros by selling shares in a joint venture with Siemens, which may also include a transaction with Siemens India. These measures should help to stabilize the company's financial situation quickly.

outlook for the industry

The need for state support underlines the challenges with which the entire industry is faced. Due to the ongoing growth, Siemens Energy has massive difficulties in receiving the necessary guarantees on the market. Therefore, the Federal Government has promised a program for securing converter platform construction and the European investment bank a guarantee program for the wind energy sector. These programs are crucial to promote investments and innovations in a sector that is of central importance for the energy transition.

Overall, the latest developments show that Siemens Energy is on the right track to free themselves from the financial difficulties and to set the course for sustainable growth. The strengthening of the balance sheet and the withdrawal of state guarantees are central milestones in this way. For the coming years it remains to be seen how market conditions develop and how the company uses the existing opportunities.