The energy technology group Siemens Energy is under pressure on the stock market. After a record high of more than 190 euros at the end of April, the share price has fallen to 143 euros, as reported by the FAZ. The report cites possible overcapacity in gas-fired power plants, profit-taking, and an overall more skeptical market sentiment as reasons.
CEO Christian Bruch, however, is sticking with the wind power subsidiary Siemens Gamesa and has set ambitious targets. In the medium term, Gamesa’s return is expected to rise to the level of the other divisions, i.e., into the low double-digit percentage range. Reaching the break-even point this year is considered almost certain.
Bruch is increasing pressure on Gamesa because the capital market does not want to permanently subsidize weaker divisions. Growing global electricity demand – also from data centers for artificial intelligence – is driving high demand for gas turbines and grid technology, where Siemens Energy is a leader. Wind power could become as important as the gas business in the future, as it makes energy supply more resilient and does not need to be imported.
Bruch is calling on the German government to speed up the construction of new gas-fired power plants. He does not fear overcapacity, even if the stock market has recently seen it differently. Siemens Energy had previously recovered surprisingly quickly from losses at Gamesa and repaid state guarantees ahead of schedule.
Source: www.faz.net
