Siemens Gamesa Posts Nearly $1 Billion Quarterly Loss

[Toddsterpatriot]

Siemens Gamesa chief executive Jochen Eickholt acknowledged equipment failures in both the company’s onshore and offshore wind turbines, leading to higher warranty provisions, contributed to a nearly $1 billion net loss for the company in the last three months of 2022.

Eickholt on Feb. 2 said the company’s October to December—the group’s fiscal first quarter—loss increased to 884 million euros (about $970 million), compared with a loss of €403 million ($441 million) a year earlier.

The company in its latest earnings report said revenue was 9.8% higher year-over-year, reaching €2.0 billion ($2.2 billion). Net financial debt was €1.9 billion ($2.1 billion) at the end of 2022.

There was some good news from the group on Thursday, as Eickholt said Siemens Gamesa will reopen two U.S-based manufacturing facilities with the expectation of an uptick in U.S. demand for wind power equipment.

Siemens Gamesa, which is soon to be delisted and incorporated into parent Siemens Energy, said its first-quarter performance was impacted by what it called faulty components and service problems. “The negative development in our service business underscores that we have much work ahead of us to stabilize our business and return to profitability,” said Eickholt, who joined Siemens Gamesa from Siemens Energy last year.

Siemens Gamesa Posts Nearly $1 Billion Quarterly Loss

Siemens Gamesa chief executive Jochen Eickholt acknowledged equipment failures in both the company’s onshore and offshore wind turbines, leading to higher

www.powermag.com

I'd heard that this was impossible. All that free wind blowing around was supposed to make green energy cheaper than fossil fuels. I guess the greens should stop listening to the economic genius of AOC.

 

[Toddsterpatriot]

As Siemens Energy took full control of its Spanish wind turbine joint venture last month, it said it was seeing the “first moves in the right direction” at a division that had suffered a string of profit warnings in recent years. But within two weeks it revealed that quality issues at Siemens Gamesa were far worse than feared and could cost €1bn to fix, sending shares in the German company down 30 per cent. “You can imagine what the state of my mood is,” said Siemens Energy chief executive Christian Bruch as he pulled the group’s profit guidance for 2023, describing the problems as “more severe than I thought possible”.

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Looks like their wind energy business still blows, eh abu afak

 

[elektra]

Siemens Gamesa chief executive Jochen Eickholt acknowledged equipment failures in both the company’s onshore and offshore wind turbines, leading to higher warranty provisions, contributed to a nearly $1 billion net loss for the company in the last three months of 2022.

Eickholt on Feb. 2 said the company’s October to December—the group’s fiscal first quarter—loss increased to 884 million euros (about $970 million), compared with a loss of €403 million ($441 million) a year earlier.

The company in its latest earnings report said revenue was 9.8% higher year-over-year, reaching €2.0 billion ($2.2 billion). Net financial debt was €1.9 billion ($2.1 billion) at the end of 2022.

There was some good news from the group on Thursday, as Eickholt said Siemens Gamesa will reopen two U.S-based manufacturing facilities with the expectation of an uptick in U.S. demand for wind power equipment.

Siemens Gamesa, which is soon to be delisted and incorporated into parent Siemens Energy, said its first-quarter performance was impacted by what it called faulty components and service problems. “The negative development in our service business underscores that we have much work ahead of us to stabilize our business and return to profitability,” said Eickholt, who joined Siemens Gamesa from Siemens Energy last year.

Siemens Gamesa Posts Nearly $1 Billion Quarterly Loss

Siemens Gamesa chief executive Jochen Eickholt acknowledged equipment failures in both the company’s onshore and offshore wind turbines, leading to higher

www.powermag.com

I'd heard that this was impossible. All that free wind blowing around was supposed to make green energy cheaper than fossil fuels. I guess the greens should stop listening to the economic genius of AOC.

According to some, they pay for themselves in minutes

 

[Toddsterpatriot]

According to some, they pay for themselves in minutes

All that free energy.......

 

[elektra]

All that free energy.......

all five minutes

 

[Crick]

According to some, they pay for themselves in minutes

Gamesa didn't suffer that loss due to to the validity of ANY opinion you've expressed about wind turbines.

 

[elektra]

Gamesa didn't suffer that loss due to to the validity of ANY opinion you've expressed about wind turbines.

I know, they suffered the loss because wind turbines do not pay for themself

 

[Crick]

I know, they suffered the loss because wind turbines do not pay for themself

I bet more than once in your life you've bought a car that turned out to be a real lemon; that performed poorly and/or broke down frequently. That was not due to anything intrinsically wrong with the concept of a motor vehicle but because the car you bought was poorly designed and/or built. Gamesa lost money because they did a poor job, not because there is anything intrinsically wrong with the concept of wind turbine generators.

 

[elektra]

. Gamesa lost money because they did a poor job, not because there is anything intrinsically wrong with the concept of wind turbine generators.

How can they lose money on something that only takes a few hours to make all its money back

 

[ding]

I bet more than once in your life you've bought a car that turned out to be a real lemon; that performed poorly and/or broke down frequently. That was not due to anything intrinsically wrong with the concept of a motor vehicle but because the car you bought was poorly designed and/or built. Gamesa lost money because they did a poor job, not because there is anything intrinsically wrong with the concept of wind turbine generators.

But a whole fleet pf lemons? Sounds like it's a systemic problem.

 

[elektra]

But a whole fleet pf lemons? Sounds like it's a systemic problem.

Corruption by politicians, naive, ignorance by their supporters, is a systemic problem.

 

[Crick]

How can they lose money on something that only takes a few hours to make all its money back

Did you not read the article? Besides, Siemens-Gamesa are not the utility. They are not taking in any funds it generates in operation. Their total net revenue is the sales margin of the things.

 

[elektra]

Did you not read the article? Besides, Siemens-Gamesa are not the utility. They are not taking in any funds it generates in operation. Their total net revenue is the sales margin of the things.

Sure, but according to you, these things are extremely profitable, and the electricity is cheap.

A better question is did you read the article, quote, and comment on the quote.

 

[Crick]

Sure, but according to you, these things are extremely profitable, and the electricity is cheap.

A better question is did you read the article, quote, and comment on the quote.

If you read the article or even had a hint of real familiarity with what's happening here, why would you ever think that Siemens-Gamesa would directly profit from the operation of wind turbines?

 

[elektra]

The Wind Turbine Non-Sustainability scam is slowly coming undone. The Turbine industry has bigger problems than poor design. Poor design, hahahahaha. The engineer hit the x's 10 key, and called that an engineering marvel. As if bigger is better. "make big, more money"

Siemens Energy reviews outlook as troubles at wind division deepen

Siemens Energy is reviewing its full-year outlook after wind turbine division Siemens Gamesa unveiled deeper-than-expected operating problems and rising costs that together triggered a substantial quarterly loss.

www.reuters.com

FRANKFURT, April 19 (Reuters) - Siemens Energy (ENR1n.DE) is reviewing its full-year outlook after wind turbine division Siemens Gamesa (SGREN.MC) unveiled deeper-than-expected operating problems and rising costs that together triggered a substantial quarterly loss.

Siemens Energy also said the operating environment had become more challenging due to the war in Ukraine as well as sanctions imposed on Russia, adding it could not rule out further negative effects on sales and profits in 2022.

The Spanish-listed firm also blamed "further pressure on energy, commodities and transportation costs, availability of key turbine components, harbor congestion, and delayed customers' investment decisions" for a 304 million-euro ($328 million) operating loss in the second quarter.

 

[elektra]

If you read the article or even had a hint of real familiarity with what's happening here, why would you ever think that Siemens-Gamesa would directly profit from the operation of wind turbines?

The successful operation and profitability of a product drives sales.

 

[Crick]

The successful operation and profitability of a product drives sales.

Obviously. But my point remains. They are not receiving money from the sale of electricity generated by their equipment as you seemed to believe.

 

[Toddsterpatriot]

Obviously. But my point remains. They are not receiving money from the sale of electricity generated by their equipment as you seemed to believe.

They are not receiving money from the sale of electricity

It's good they're not. They'd have gone bankrupt years earlier.

 

[ding]

If you read the article or even had a hint of real familiarity with what's happening here, why would you ever think that Siemens-Gamesa would directly profit from the operation of wind turbines?

Do you think they expected to take a loss from the operation of wind turbines they sold?

 

[hadit]

If you read the article or even had a hint of real familiarity with what's happening here, why would you ever think that Siemens-Gamesa would directly profit from the operation of wind turbines?

Uhhh, because when wind turbines are fantastically awesome, efficient and provide very cheap, reliable energy and don't kill wildlife and don't fill up landfills with toxic chemicals. orders for new ones go up, and they benefit. When, OTOH, wind turbines do NOT perform as advertised, when they kill wildlife and fill landfills with toxic chemicals, orders for new ones go down and they lose out.

I thought this was all pretty obvious.