Siemens Energy scraps profit forecast over rising wind turbine failures

 

BERLIN – German power firm Siemens Energy scrapped its profit guidance for the fiscal year 2023 on Thursday, as subsidiary Siemens Gamesa cited an increase in failure rates of wind turbine components.

German power firm Siemens Energy scrapped its profit guidance for the fiscal year 2023 on Thursday, as subsidiary Siemens Gamesa cited an increase in failure rates of wind turbine components.

But Siemens Energy maintained its annual revenue guidance as well as all assumptions for Gas Services, Grid Technologies and Transformation of Industry.

Siemens Gamesa initiated an extended technical review of its installed fleet and product designs, following the substantial increase in failure rates of wind turbine components.

According to the company, the current status of the technical review suggests that in order to reach the targeted product quality of certain Onshore platforms, significantly higher costs will be incurred than previously assumed.

Potential quality related measures and the associated costs are currently under evaluation and are likely to be in excess of €1 billion ($1.1 billion).

Siemens Energy said it is also reviewing assumptions critical to the existing business plans given productivity improvements are not materializing to the extent previously expected.
In addition, it continue to experience ramp up challenges in Offshore.