Siemens Energy said its overall fiscal year 2022 performance was held back by its Siemens Gamesa Renewable Energy (SGRE) unit. 

Christian Bruch, president and CEO of Siemens Energy, said that while the company’s gas and power business delivered “solid results,” Siemens Gamesa “did not meet expectations.”

New management has been put in place in the renewable business unit in an effort to rectify problems. And last spring, Siemens Energy announced a voluntary cash tender offer to acquire the roughly 33% of outstanding shares in Siemens Gamesa Renewable Energy which Siemens Energy does not already own. 

Starting on November 8, minority shareholders were given the option to tender their shares for €18.05 ($18.66) per share in cash until December 13. If the offer proves successful,  Siemens Energy would delist the business unit from the Spanish stock exchanges, where it currently trades as a member of the IBEX 35 index. 

Bruch said November 16 that the energy transition would fail unless the industry addressed issues currently facing the wind power sector.

In an interview with CNBC’s “Squawk Box Europe,” Bruch was quoted as saying, “Never forget, renewables like wind roughly, roughly, need 10 times the material [compared to] … what conventional technologies need.” 

He said supply chain problems can hit wind “extremely hard, and this is what we see.” Challenges facing the wind business “leads to the situation [where] … it impacts the overall group results substantially.”

The poor performance mirrored similar results reported by chief rival General Electric. In late October the industrial reported a bumpy third quarter across its renewable energy and power business segments. GE’s onshore wind turbine revenues came in at $2.445 billion for the quarter, which ended September 30. That was down from $3.047 billion for the same quarter a year earlier. For the first nine months of the year, onshore wind turbine revenue was $6.403 billion, down from $8.048 billion a year earlier. The GE business unit also plans to cut its global workforce by around 20% over the next several years.

Siemens Energy said that for its full fiscal year, revenues at its renewable business unit totaled €9.8 billion ($10.13 billion), down 7.5% from the €10.2 billion reported in 2021.

Fourth quarter revenue from the renewable energy segment rose 13.4% from the same period a year earlier. Revenue totaled nearly €3.4 billion ($3.52 billion), compared to nearly €2.9 billion a year earlier.

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