The company, which plans to cut 2,900 jobs in the coming years, thinks the recovery will not happen until 2024.
Siemens Gamesa closed its last fiscal year with a loss of 940 million euros, bringing the red figures of the last three years to the hair-raising figure of 2,385 million euros. The company is in the process of reconversion and this Thursday released a number of positive messages that, in the opinion of the directors, lead us to suspect that the company has a future in a market that, at least theoretically, will accelerate demand for generation. of electricity with renewable technologies. One is the company’s order book, which already stands at 35,000 million—representing a four-year activity guarantee—and, most importantly, a 26% increase in wind turbine sales prices compared to last year.
The sale of the wind farm promotion division to a British investment fund last September partially eased the profit and loss account of the company, which already lost EUR 1,226 million in the first nine months of the fiscal year. The actual restructuring, warned those responsible for the company, will not come until 2024 – next year they have described it as a transition exercise – after the start of the easing of personnel costs. A process that aims to achieve a 10% cut, which would mean the reduction of 2,900 jobs, 475 of which would be in Spain.
Siemens Gamesa has already started another restructuring process with the splitting and sale of a number of activities. It is now the turn of 8 factories in Spain, after the transfer to the SSE fund of its division for the promotion of wind farms. They are the ones who produce the multipliers – the equivalent in wind turbines to a vehicle’s gearbox – and some electrical elements. Siemens Gamesa only wants to keep the industrial activity of assembly, therefore it would keep only one factory in Spain dedicated to this purpose.
Last year’s turnover amounted to 9,814 million euros, a decrease of 4% compared to the figures of the previous year. In addition, the profit and loss account was mainly impacted by the accelerated cost increase of supplies and raw materials. Siemens Gamesa acknowledged that most of its contracts, signed several years before the scheduled delivery date of its equipment, did not contain price review clauses. Therefore, the increases in production costs have turned wind turbine sales into a wheel of generating losses. Added to this are calculation errors in the cost of some sales, as well as the technical difficulties of launching the 5X wind turbine, which can produce nearly 7 megawatts of electricity per hour.
On the other hand, the company has already started procedures to lighten the structure of its corporate governance, which is only a harbinger of what will happen in the coming months when Siemens Energy’s takeover bid to acquire 100 % of the capital of its subsidiary. It currently controls almost 68%. For example, the company has eliminated the delegated committee of the board of directors in order to simplify the bureaucratic structure and leave it to the board to make all decisions. Next up is the IPO.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
