Siemens Energy is in preliminary talks with banking partners and the German government to secure guarantees.
The German company said it needs the backing to facilitate the anticipated strong growth in its former gas and power businesses.
However, it has also warned that intake and revenue at troubled turbine maker Siemens Gamesa are expected to be lower than market expectations for fiscal year 2024.
In a statement, Siemens Energy said: “The former gas and power businesses are expected to continue their excellent performance in fiscal year 2024 and are on track to achieve their mid-term targets (fiscal year 2025).
“The wind business Siemens Gamesa is working through the quality issues and is addressing the offshore ramp up challenges as announced in the third quarter communication for fiscal year 2023.
“As Siemens Gamesa is for the time being not concluding new contracts for certain onshore platforms and is applying strict selectivity in the offshore business, order intake and revenue are expected to be lower than market expectations for fiscal year 2024, and net losses and cash outflow are expected to be higher than market forecasts.”
The strong growth in order intake, particularly in the former gas and power business areas, has led to a rising need of guarantees for long-term projects, said the company.
Considering this requirement, the executive board is evaluating various measures to strengthen the balance sheet of Siemens Energy and is in preliminary talks with different stakeholders, including banking partners and the German government.
Siemens Energy’s budgeting process is still ongoing and no decisions in respect to the annual budget 2024 and/or any specific financing measures have yet been taken by the Executive Board.