S&P trims Siemens Energy

S&P said it lowered its issuer ratings on Siemens Energy AG and its subsidiary Siemens Gamesa Renewable Energy to BBB- from BBB.

“Siemens Energy continues to underperform our base case, posting additional charges that are depressing EBITDA in 2023. The rating revision follows a profit warning on June 22, causing Siemens Energy to withdraw its public guidance. The company indicated that it is facing component failures in its onshore business and ramp-up challenges in offshore. We understand these matters are completely new and separate from earlier announcements.

“Consequently, Siemens Energy is likely to book related charges of more than €1 billion relating to onshore, with the majority of cash impact spread across the next four years. This amount comes on top of €472 million of charges reported in the first quarter of fiscal 2023 as the company discovered faulty components at its wind turbine fleet,” S&P said in a press release.

The outlook is stable.

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