Discontent at Siemens Energy over wind division losses – media report

The management board of Siemens Energy faced down displeased shareholders looking for answers to spiralling losses from wind turbine subsidiary Siemens Gamesa at the group's annual general meeting, newspaper Die Welt reported. In 2023, the group posted net losses of some 4.6 billion euros despite strong growth in its traditional grid and power plant divisions after quality problems at the Spain-based wind unit, which Siemens Energy acquired almost entirely in 2022. Shareholders called the takeover "completely overpriced" and expressed their shock that management had "praised Gamesa with great conviction and enthusiasm until shortly before your profit warning," the article said.

Chief Executive Officer Christian Bruch said the company had carried out due diligence measures before the Gamesa takeover, but the scale of the problems only became apparent in the middle of 2023. The CEO also rebuffed suggestions that Siemens Energy should divest from its wind business. "We will solve these problems in the wind business," said Bruch. Onshore and offshore wind is "central" to the energy transition and the company, which is committed to climate protection, added the company's management.

Siemens Energy received guarantees from the German state and several banks to the tune of around 12 billion euros late last year so it could continue doing business. The company is an important provider of energy transition equipment but has struggled to make key components of its business profitable, notably the Siemens Gamesa wind turbine joint venture.