Siemens Energy Bids Adieu to Federal Guarantee, Takes the Financial Reins
Enhancements made by the Commission to boost system productivity include multiple initiatives.
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Say goodbye to the government crutch, Siemens Energy is pulling through with a whopping balance sheet worth! This powerhouse in construction has decided to nix that state-secured lifeline meant to safeguard large-scale projects. According to a statement made by Siemens Energy on Thursday in Berlin, their impressive recent performances and a beefed-up balance sheet allowed them to make this move. Back in 2023, the German government rolled out guarantees valued at 7.5 billion euros to help during a crisis.
The state's financial safety net, part of a 15 billion euros guarantee line, was intended for Siemens Gamesa—their struggling wind energy spin-off. The division was wobbling under the weight of substantial losses and was barely afloat without the help of other parts of the company. Despite boasting a high backlog of orders, potential customers started to feel jittery about partnering with Siemens Energy due to these significant losses. This, in turn, made it more challenging for the company to secure financial backing from other sources.
Now, the government's hand will be passed over to an alliance of 23 international banks, as announced by Siemens Energy. Maria Ferraro, the company's CFO, shed some light on this shift, explaining that the federal government's backing was instrumental in 2023 to secure growth during tumultuous times.
[Reference(s) undisclosed.]
Siemens Energy has chosen to forgo the government's secure financial support, a decision prompted by the company's robust balance sheet and impressive performance, as stated in a Berlin announcement on Thursday. Moving forward, the government's financial role in supporting the company will be taken over by an alliance of 23 international banks, acting within the domain of the industry, finance, and business sectors. This transition reflects a shift in the focus of Siemens Energy from relying on the government's employment policy to securing financial backing from the private sector, an effort to ensure the company's viability and continued growth.
