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August 5, 2021updated 06 Aug 2021 3:34pm

Siemens Energy reports revenue increase in third quarter

For its Siemens Gamesa Renewable Energy segment, the company expects nominal revenue growth of between 8% to 11%.

By Umesh Ellichipuram

Siemens Energy has reported an 8.8% increase in revenue to €7.3bn ($8.6bn) for the third quarter of the year compared to the same period of last year.

On a comparable basis, excluding currency translation and portfolio effects, this figure represents an 11.2% rise.

The increase was caused by growth in Siemens Energy’s Gas and Power (GP) and Siemens Gamesa Renewable Energy (SGRE) segments for a book-to-bill ratio.

In its Earnings Release for the quarter, the company said that although its GP segment was on track, orders for SGRE had declined by 36.8% to €5.9bn ($6.9bn) against a strong order intake in the third quarter of last year, primarily due to volatile order development.

SGRE’s order backlog at the quarter-end came to €82.6bn ($97.9bn).

Siemens Energy president and CEO Christian Bruch said: “Our activities at Gas and Power are fully on track and the segment delivered as planned.

“At the same time, we are not satisfied with the performance of SGRE, which suffered a significant setback in the turnaround of the onshore business.

“This does not change the attractive market fundamentals for Siemens Energy, [but] due to the headwinds at SGRE, we do not expect to reach the low end of the group margin guidance for the full year.”

Due to the financial performance of SGRE’s onshore business in the third quarter, as well as a lower profit outlook for the full year, the company’s management now expects Siemens Energy’s adjusted earnings before interest, tax and amortisation (EBITA) margin before special items to be between 2% and 3%.

The adjusted EBITA was impacted by provisions for onerous contracts of €229m ($271m) due to an increase in raw material prices, as well as ramp-up costs for the SGRE 5.X platform being higher than expected.

In May, Siemens Energy reported a 4.4% decrease in revenue to €6.5bn ($7.7bn) for the second quarter of the year, down from €6.78bn ($8bn) in the same quarter of last year.

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