Siemens Energy finds limited synergies in onshore and off-shore wind

Siemens Energy's CEO stated on Friday that there are few synergies to be found between its onshore wind unit and its better performing offshore units. This reflects the uncertainty surrounding the future of this loss-making division.

Siemens Gamesa is Siemens Energy's wind turbine division, which produces both on- and offshore turbines. The division, still recovering from the quality crisis of two years ago has posted an operating loss for the fiscal year ending in September, totaling 1.36 billion euro ($1.59 billion).

Siemens Gamesa, which is expected to break even by 2026, has confirmed that Siemens Energy also raised its mid-term goals and announced its first dividend for four years, citing strong demand in gas turbines and electricity grids.

Siemens Energy, despite its commitment to turning around the business and highlighting the long-term prospects of wind energy, has committed to reversing the unit's losses.

Christian Bruch, CEO of Siemens Energy said: "Remember it's the tale of two cities." "Offshore, our market share is the highest. We have excellent products. If the market continues its growth... "I think we're well-positioned to continue growing the margins."

Bruch stated that "the key question for onshore wind will be whether the Chinese will flood the market, or not?" Quality issues had caused the company to stop selling its latest generation of turbines. This is something I do not know yet. It's still too early to tell what direction the future will take.

Bruch responded that "synergies are more limited than most people think." Reporting by Christoph Steitz, Max Schwarz and Miranda Murray Editing by Elaine Hardcastle

(source: Reuters)