Siemens Energy shares soar as troubled wind turbine maker plays down bailout talk

'The company obviously doesn’t need money from the state', chairman said

Germany’s economy ministry, led by the Green Party’s Robert Habeck, is prepared to support Siemens Energy, viewing it as a strategic asset that will play an important role in protecting energy supplies.

Shares in Siemens Energy soared after board chairman Joe Kaeser pushed back against suggestions the troubled turbine maker may need a taxpayer-funded bailout from the German government.

“The company obviously doesn’t need money from the state,” Mr Kaeser told newspaper Welt am Sonntag. “All segments apart from the wind business are doing well, partly better than at the competition,” he said.

The shares rose as much as 17% in Frankfurt at one stage, the steepest gain since shares in Siemens Energy started trading more than three years ago. They are still down more than 50% this year.

The company confirmed last week it was in talks with the German government. According to people familiar with the matter, it is seeking loan guarantees worth as much as €16bn for future projects.

Siemens Energy earlier this year forecast a €4.5bn loss for its financial 2024 year despite assurances it had finally come up with a plan to address problems with certain wind turbines at its Spanish Gamesa division. 

The company is seeking backstops over a two-year period after major shareholder and former parent Siemens indicated it was no longer willing to help, people familiar with the matter have said. 

The company said it was also speaking to banks, and Germany chancellor Olaf Scholz described the talks, which are confidential, as “very good". 

The wind turbine losses are clouding Siemens Energy’s other profitable businesses and the company’s total order backlog of €110bn. The situation is therefore different to last year’s bailout of gas giant Uniper — which was on the brink of bankruptcy after Russia stopped supplying gas and had used €13.5bn in equity injections, along with credit lines.

Germany’s economy ministry, led by the Green Party’s Robert Habeck, is prepared to support Siemens Energy, viewing it as a strategic asset that will play an important role in protecting energy supplies. 

• Bloomberg