Siemens GP segment off to ‘solid start’ in ’22

By Jack Burke21 January 2022

Siemens Gamesa Renewable Energy was hurt by supply chain disruptions, which the company expects “to last longer than previously anticipated”

Siemens Energy’s Gas and Power segment (GP) had a “very solid start” to the 2022 fiscal year, the company announced.

The segment had an order intake of €5.890 million, compared to €5.166 million in the first quarter of 2021, an increase of 11.7%. Revenue, however, was down 5.9%: €4.140 million in 2022 compared to: €4.292 million in 2021, according to preliminary figures.

Management still believes that the Gas and Power segment will grow in fiscal year 2022 anywhere from 1% to 5% and an adjusted earnings before interest, taxes, and amortization (EBITA) margin before special items between 4.5% and 6.5%. Expectations for fiscal year 2023 are even higher, with adjusted EBITA margin expected to grow between 6% to 8%.

Siemens HQ

Siemens Gamesa Renewable Energy, a subsidiary of Siemens Energy, was hurt by supply chain disruptions, which the company expects “to last longer than previously anticipated,” the company announced in a news release.

“Incorporating SGRE’s new guidance for fiscal year 2022 Siemens Energy AG’s management expects for Siemens Energy group a comparable revenue development (excluding currency translation and portfolio effects) to be in a range of neg. 2% to pos. 3% versus neg. 1% to pos. 3% previously and an Adjusted EBITA margin before special items of pos. 2% to pos. 4% versus pos. 3% to pos. 5% previously. Management will reassess its expectations for Siemens Energy group’s Adjusted EBITA margin before special items for fiscal year 2023 (previously pos. 6.5% to pos. 8.5%).

For the first quarter of fiscal year 2022 the preliminary figures are:

Siemens Energy

Order intake: €8,330m (Q1 FY 2021: €7,432m; consensus €7,585m), up 10.1% comparable

Revenue: €5,956m (Q1 FY 2021: €6,541m; consensus: €6,311m), down 11.4% comparable

Adjusted EBITA: neg. €57m (Q1 FY 2021: €243m; consensus: €91m), reflecting a margin of neg. 1.0% (Q1 FY 2021: 3.7%; consensus: 1.4%)

Adjusted EBITA before Special Items: neg. €63m (Q1 FY 2021: €366m; consensus: €153m), reflecting a margin of neg. 1.1% (Q1 FY 2021: 5.6%; consensus: 2.4%)

Free cash flow pre tax: neg. €69m (Q1 FY 2021: neg. €388m)

Siemens Energy AG will publish its full earnings release for the first quarter of fiscal year 2022 on Feb. 9.

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