Shares in equipment manufacturer Siemens Energy (XETR: ENR) have climbed nearly 15% as a Q1 results announcement showed signs of recovery from a major wind turbine crisis.
Frankfurt-listed Siemens Energy said results in Q1 are better than market expectations, with revenues up 12.6% on a comparable basis to €7.6bn on a comparable basis, while orders are up 23.9% to €15.3bn.
Ongoing problems at the firm’s Gamesa wind subsidiary, where there have been mounting issues linked to faulty turbines, have seen parts of the business sold off in order to bolster the balance sheet.
Siemens Energy said in November that 2023 will be a full-year loss, however some positive signs were given in Tuesday’s trading statement ahead of the 2024 Q1s on February 7.
The firm’s chairman told Reuters last week that “the worst is over” and it has not found any new flaws in their newest onshore wind turbines.
A spokesperson said the firm is “on the right track, but no more and no less”.
Guidance for 2024 is to remain unchanged, the firm said in the trading update, which said quarterly group profits will stand at €1.87bn.
However free cash flow will be negative €283m due to expected high cash outflow from the wind unit.
Siemens Gamesa itself will make a loss of €426m.
Siemens Energy said in November that the Gamesa wind subsidiary will not break even until 2026.
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