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May 6, 2021

Siemens Energy reports moderate fall in second-quarter revenue

Siemens Energy has reported a moderate decrease in revenue by 4.4% to €6.5bn for the second quarter of the year, compared to €6.78bn in the same quarter of last year.

By Srivani Venna

The company’s adjusted earnings before interest, tax and amortisation (EBITA) stood at €197m, a sharp increase from €88m in last year’s second quarter.

Last year, its EBITA was negatively impacted by the Covid-19 pandemic as well as ‘project-related matters’, predominantly in the Siemens Gamesa Renewable Energy (SGRE) segment.

Revenue in the Gas and Power segment was down by 9.7% to €4.16bn compared to €4.61bn in the same quarter of the previous year. This decrease was primarily due to negative currency translation effects and the lower order intake in previous quarters.

Revenue in the SGRE segment increased by 6% in the quarter to €2.33bn, as against €2.2bn last year.

Siemens Energy president and CEO Christian Bruch said: “I am pleased with our solid second-quarter results and that we are on track to reach our targets for the year despite a challenging environment.

“Our strong order intake proves our competitiveness, especially that of our sustainable portfolio elements.”

With special items totalling negative €91m, adjusted EBITA during the quarter before special items sharply rose to €288m with a 4.4% margin.

The company’s net income was €31m, representing a sharp increase after a loss in the same quarter of last year, and its corresponding basic earnings per share (EPS) increased to €0.03.

In the second quarter, Siemens Energy’s orders increased by 39% to €10.5bn, substantially above the same quarter last year, driven by SGRE.

Siemens Energy’s nominal revenue growth rate for this year is expected to be in the range of 3% to 8%.

The company expects the nominal revenue growth of its Gas and Power segment to be in the range of 2% to 6%, and that of its SGRE segment to be in the range of 8% to 11%.

In December, the company secured a contract from MHI Vestas Offshore Wind to supply distribution transformers to the Seagreen Offshore Wind Farm.

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