According to the company’s website press release on November 16, 2022,
Christian Bruch, President and Chief Executive Officer of Siemens Energy AG:
“In a challenging year Siemens Energy managed to again deliver solid results in our Gas and Power segment, while SGRE did not meet expectations. At Gas and Power, our operational excellence program is showing results. It was also important that Siemens Energy aligned our group structure with future needs. Siemens Energy will provide more transparency about business performance and flatter hierarchies give us the ability to take decisions faster. The integration of SGRE will help to improve profitability at our wind business and allow it to deliver to its full potential”
Q4 Fiscal Year 2022
- Unfavorable geopolitical and macroeconomic factors continued to impact Siemens Energy’s business. Despite these headwinds, Gas and Power (GP) once again experienced strong demand and demonstrated resilience in its business due to rigorous project execution and stringent execution of measures taken in context of its operational excellence program. SGRE benefited from the sale of its wind farm development portfolio in Southern Europe which contributed €0.6bn to orders, revenue, Adjusted EBITA and Free cash flow pre tax in the fourth quarter.
- The restructuring of Siemens Energy’s business activities in Russia continues to progress and Siemens Energy expect closing in Q1 of fiscal year 2023 without further significant financial impacts. In the recent quarter, a negative impact of €19m was reported as a special item.
- Orders continued to be strong. Comparable growth (excluding currency translation and portfolio effects) was 27.4% despite a high basis of comparison. Both segments contributed to the increase, resulting in orders of €12.2bn driving order backlog to another record of €97.4bn.
- Revenue of €9.2bn rose by 5.9% on a comparable basis with a slight growth at GP, and a stronger increase at SGRE.
- Siemens Energy’s Adjusted EBITA before special items amounted to €594m (Q4 FY 2021: negative €46m). GP sharply improved compared to its prior-year quarter’s result and SGRE turned positive. Special items sharply decreased to negative €106m (Q4 FY 2021: negative €281m). Adjusted EBITA for Siemens Energy came in at €489m (Q4 FY 2021: negative €327m).
- Accordingly, Siemens Energy had a Net income of €378m (Q4 FY 2021: Net loss €383m). Corresponding basic earnings per share (EPS) were €0.36 (Q4 FY 2021: negative €0.43).
- Free cash flow pre tax amounted to €1,949m and exceeded strong prior-year quarter’s level of €985m
Fiscal Year 2022
- Siemens Energy operated in a challenging environment during fiscal 2022. Nevertheless, GP delivered a solid performance characterized by strong orders and increased profitability year-over-year, demonstrating business resilience. However, Siemens Energy’s overall performance was held back by the negative development at SGRE. Regarding the adjusted outlook in the third quarter, Siemens Energy largely met its guidance. While Adjusted EBITA margin before special items fell slightly short of expectations, Siemens Energy recorded a lower than expected Net loss excluding the negative impact from the restructuring of the Russia business reported under special items, and a higher Free cash flow pre tax.
- Driven by GP, Siemens Energy’s orders exceeded the high level of the prior fiscal year by 11.9% on a comparable basis and rose to €38.3bn (FY 2021: €33.0bn). On a nominal basis, orders increased by 16.1%
- Revenue of €29.0bn was down by 2.5% on a comparable basis (including Russia-related effects) due to the decline at SGRE. On a nominal basis, revenue grew by 1.8% compared to the prior-year amount of €28.5bn.
- Siemens Energy’s Adjusted EBITA before special items decreased to €379m (FY 2021: €661m) due to the high loss at SGRE. Special items amounted to negative €453m (FY 2021: negative €673m) largely related to burdens of €200m in connection with the restructuring of business activities in Russia and restructuring and integration costs at SGRE. Adjusted EBITA for Siemens Energy came in at negative €75m (FY 2021: negative €12m).
- Net loss of Siemens Energy was €647m (FY 2021: negative €560m). Corresponding Basic earnings per share (EPS) were negative €0.56 (FY 2021: negative €0.63).
- Free cash flow pre tax increased to €1,503m (FY 2021: €1,358m) driven by an exceptionally high level at GP primarily due to advance payments given the strong order intake. The group’s Net cash position improved from €2.5bn at the end of fiscal year 2021 to €2.8bn despite a cash deposit of €1.15bn pledged in favor of the Spanish National Securities Market Commission (CNMV) in connection with the planned acquisition of all outstanding shares in Siemens Gamesa Renewable Energy S.A.
Fiscal Year 2023
- For Siemens Energy in fiscal year 2023, Siemens Energy expects comparable revenue growth in a range of 3% to 7% and a profit margin before special items of 2% to 4%. Furthermore, Siemens Energy expects a sharp reduction of Net loss compared to fiscal year 2022. Siemens Energy expects Free cash flow pre tax to be in a negative range of low- to mid-triple-digit million €.
