Siemens Energy Won’t Pay Dividend as Siemens Gamesa Challenges Weigh

A logo is seen at Siemens Energy's site on the day of German Chancellor OIaf Scholz's visit, during which he saw a gas turbine meant to be transported to the compressor station of the Nord Stream 1 gas pipeline in Russia, in Muelheim an der Ruhr, Germany, August 3, 2022. REUTERS/Wolfgang Rattay

Siemens Energy on Wednesday said it would not pay a dividend for 2022, citing a widening net loss and challenges related to its struggling wind turbine division Siemens Gamesa.

The company's net loss came in at 647 million euros ($669 million), also burdened by a 200 million charge due to the restructuring of its Russian division.

Siemens Energy owns 67% in Siemens Gamesa and has launched a 4.05 billion euro bid, expected to run until Dec. 13, to buy the rest in a bid to better integrate the division and fix quality issues at a next-generation turbine model.

"In a challenging year we managed to again deliver solid results in our Gas and Power business, while Siemens Gamesa did not meet expectations," Siemens Energy Chief Executive Christian Bruch said in a statement.

"The integration of Siemens Gamesa will help to improve profitability at our wind business and allow it to deliver to its full potential."

Fourth-quarter sales were up 5.9% at 9.2 billion euros, the company said, higher than the 8.8 billion Refinitiv estimate.

The company added that at 97.4 billion euros, its order backlog had reached a new record.

($1 = 0.9670 euro)