Admin I Friday, Oct.27, 2023
FRANKFURT – Siemens Energy is said to be in discussions with the German government about securing state guarantees worth billions of euros, as reported by German business magazine WirtschaftsWoche.
This development has sparked concerns among investors, leading to a significant drop in the company’s shares during early trading.
According to sources in the financial industry cited by WirtschaftsWoche, these guarantees could potentially involve loans of up to €15 billion ($16 billion).
The primary purpose of these guarantees is to preempt a situation where banks might increase the cost of credit or even withdraw essential credit lines for Siemens Energy projects.
The company is currently grappling with challenges in its wind power division and is expected to report a substantial financial loss for the fiscal year that ended in September.
However, it’s important to note that other segments of Siemens Energy’s business are performing strongly, with robust demand and full order books.
Despite these developments, a spokesperson from Siemens Energy declined to comment on the report, and there are varying reports regarding the exact amount of the guarantees, with Der Spiegel mentioning lower figures.
The situation highlights the complexities and uncertainties facing Siemens Energy in the ever-evolving energy sector.
