Siemens Energy has seen over a third knocked off its market value today, after the firm warned investors it would cost nearly a billion euros to resolve problems at its wind turbine business.
Its share price is down 35.2 per cent this afternoon, its biggest plunge since the group was spun off from Siemens and separately listed in 2020.
The European energy giant scrapped its profit outlook for the year yesterday, after a review of its wind turbine division exposed serious problems.
It revealed the impact of quality problems at Siemens Gamesa could years to fix – while the financial hit will be over the next five years.
“This is a disappointing and severe setback,” chief executive of Siemens Gamesa, Jochen Eickholt, told reporters.
“Given the history and nature of the wind industry, the profit warning was not a complete surprise, but what surprised us was the magnitude,” analysts at JP Morgan told news agency Reuters.
This follows the discover of faulty components at Siemens Gamesa in January, which had already caused a charge of nearly half a billion euros.
Siemens Energy has since taken full control of the business, after only partially owning it for several years.
The company publishes its third-quarter results on 7th August, before which it will provide a full analysis of the situation with an accurate estimate of the costs.