Wind power subsidiary weighs on Siemens Energy’s profitability
Clean Energy Wire
Wind power subsidiary Siemens Gamesa is weighing on the business performance of energy company Siemens Energy. The turbine maker chalked up a loss of 386 million euros in the second quarter of the 2022/2023 financial year, Siemens Energy announced in its earnings report, citing “the continuous challenging market environment in the wind industry” as a reason for Siemens Gamesa’s meagre performance. Siemens Energy acquired the company almost entirely in 2022 and is currently aiming to also buy up the remaining two percent of shares in Spain-based Siemens Gamesa. “The turnaround of the wind business remains the cornerstone of becoming a profitable leader of the energy transition,” Siemens Energy head Christian Bruch said, adding that the turbine maker’s integration into the parent company is progressing.
While the roll-out of wind power in many regions of the world is accelerating, turbine makers still grapple with high raw material prices and other challenges for turning a profit. However, rising orders could mark a turnaround for the industry once these new contracts start to pay off.
