Siemens Energy said today its net loss more than doubled in the first quarter, blaming charges related to quality issues at Siemens Gamesa which the German firm is trying to fix via a full takeover of the wind division.
Siemens Energy, which pre-released first-quarter results last month, said its net loss widened to €598m in the three months from October to December, compared with a loss of €246m the same time a year earlier.
"This has been a hard blow for us," CEO Christian Bruch told journalists, referring to the €472m charge Siemens Gamesa unveiled last month due to faulty components that led to higher warranty and service costs.
Shares in the group, which according to Chief Financial Officer Maria Ferraro had secured 97.59% of Siemens Gamesa as of February 6, fell 2.3% in pre-market trade.
As part of its move to take over the rest of Siemens Gamesa, which is in the process of being delisted, Siemens Energy plans to raise a maximum of €1.5 billion as soon as possible to help fund the transaction, Ferraro said.
Siemens Energy will ask shareholders at its annual general meeting later today to allow the issuing of new shares in the future.
Order backlog hit a new record at €98.8 billion at the end of December, said the group that was spun off from Siemens, driven by its grid technology division which recorded a major win last month.
The group said the order backlog would translate into €22 billion of revenues in 2023, €21 billion in 2024 and €55 billion in 2025. Service accounts for more than half of the backlog.