The German renewable Firm, Siemens Energy reported today to have profited massively from a surge in orders and from selling 18% of its Indian affiliate to the parent company Siemens.
As of today, the 18% stake of India’s Siemens Limited sold for 2.1 billion euros, which the company reported to have a net profit of 1.58 billion euros.
The Energy Company also reported a 12.6% rise in revenue on a year-to-year basis, delivering 7.6 billion euros. Siemens grid technology division has a strong performance on the part of the company that has observed this.
However, there has been a year-to-year increase in orders reaching 23.9% to 15 billion euros and a 2.01 ratio of actual booking to billings raising its order backlog to 118 billion euros.
But before this recent rise in profits, the company has been facing several losses and issues. In one quarter a year ago, Siemens to a 283 million euros loss, while at the same time hit with about 500 million euros in quality-related charges.
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The company made a comeback with a 208 million euro profit that same quarter. According to the company, the quality-related charge was pointed at the wind turbine Subsidiary Siemens Gamesa.
This subsidiary was also the primary reason for the283 million euros negative on the balance sheets due to a loss and operating cost build-up during a seasonally weak quarter.
The quality-related problems with manufacturing at Siemens Gamesa made Siemens Energy suffer a rough year in 2023, resulting in a 4.6 billion euro loss for the fiscal year.
We will continue to work through our Siemens Gamesa quality issues and we saw that this quarter was a stable quarter, so as expected, and a step by step we’re going to be looking at all of those quality issues and rectifying those.
Siemens Energy Chief Financial Officer Maria Ferraro to CNBC on Wednesday
At the moment, the wind turbine division is having an ongoing quality investigation.