Departure from Russia will Cost Siemens Energy a Lot of Money

Energy company Siemens Energy has lowered its profit forecast for this year. This is due to problems at its Spanish wind turbine subsidiary and the restructuring of its Russian activities.

 

The number of orders with the German company also increased.

Siemens closed the second quarter with an operating loss of EUR 429 million. The deficit was higher than estimated by experts. The departure from Russia, in connection with the war in Ukraine, is expected to burden Siemens this year with a cost of at least 200 million euros.

Among other things, Siemens is the maker of the turbine for the Nord Stream 1 gas pipeline that runs between Russia and Germany. This was for maintenance in Canada but is now back in Germany. However, the sanctions against Russia make the return to Russia more difficult. It is, therefore, still questionable whether the supplies of Russian gas to Germany will regain the level.

Meanwhile, the number of orders at Siemens increased by 60 percent to 9.8 billion euros. Siemens is particularly noticing a strong demand for turbines for wind turbines as part of the energy transition. As a result, sales doubled in Europe, the Middle East, and Africa.

The Spanish subsidiary Siemens Gamesa recently warned of rising raw material costs. The German company previously announced that it would fully control the part. Siemens will pay 4.3 billion euros for this.

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