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Siemens Energy is on the right track, as the latest figures show. Although the wind subsidiary Gamesa, like before, is registering losses, all other divisions are doing well and are profitable – trend rising. That the stock market also sees it that way is shown by the share price being at times over...
That the wind subsidiary Siemens Gamesa will still cost its parent company a lot of money has been the case for a while. Too great are the problems with some wind turbine types (onshore), and integration also costs money until synergies properly take effect and cost reduction potentials can be...
The integration of wind subsidiary Gamesa will still need time until synergies (supply chains, joint purchasing power) and cost reduction potentials become visible in good, or initially at least better, figures. Nothing else is to be expected. The increased loss in the first quarter (Sep. 30, 2022)...
The integration of Siemens Gamesa will not be a quick job. The attributable losses will still burden the results of parent company Siemens Energy for several quarters. That is, until the results of the reorganization, the pooling of purchasing power (cost reduction potential) and other measures are...
The German capital is also becoming increasingly important for hydrogen activities as an industrial location. Siemens Energy announced at the end of March 2022 that the manufacture of electrolyzers will be occurring at its location on the Huttenstraße in Berlin-Moabit. Starting 2023, electrolysis capacities on a gigawatt scale are to be produced there.
Thorsten Herdan has worked for the German economic ministry for 8 years. Now, he’s moving to HIF Global.
Regardless of the many good news and developments around hydrogen, there must of course also be a critical consideration of the aspects that may, for example, hinder or delay rapid build-up of production capacity.
Now it has come to the final step with the loss-making Siemens Gamesa: Siemens Energy will fully integrate the 67.1% subsidiary, as was to be expected. The parent company is buying the remaining shares via a takeover bid for 18.05 EUR per share. As interim financing, a loan in the amount of 4 billion EUR was taken, which will surely be refinanced through the issuance of treasury shares – there’s talk of up to 2.5 billion EUR.
Siemens subsidiary Gamesa still doesn’t seem to be out of the woods, looking at the strong loss (minus 627 million EUR) that this company contributed to its parent (total minus of 560 million EUR). Onshore wind is considered a problem area – combined with miscalculations and supply chain issues. For this reason, there is speculation that this subsidiary will be fully integrated or restructured via a share swap, which could be implemented in, among other things, a realignment or even a split-off. A partial merger with a competitor may also be possible.
All eyes will be on Rotterdam in March 2022 when the city will host its first-ever global hydrogen summit and exhibition. The Dutch region, which is home to Europe’s largest port, has its sights set on becoming a hydrogen hub, at least that is the intention set out in the country’s energy strategy. The Dutch government sees the international trade in hydrogen gas as a great opportunity – assuming that a pan-European pipeline project doesn’t get in the way.
Despite dubious past experience with the countries of the Middle East and North Africa region, in November 2021 the German government signed a declaration of intent with the United Arab Emirates covering the establishment of an Emirati-German task force for hydrogen and synthetic fuels. The deal was...
If you read about any of the major hydrogen projects underway, you will be unable to avoid Siemens Energy. Orders like the recent ones worth EUR 700 million should be on the agenda. Even the problems with its wind power subsidiary Gamesa seem solvable because – regardless of short-term problems (price increases in raw materials and component shortages) – the market is growing strongly. Here, I would venture to suggest to the company that it integrates wind farms into existing projects and offerings via Power Purchase Agreements, or PPAs, from the outset. Then you would be able to view a wind farm from a different return perspective and margin.
