By Giulia Petroni
Siemens Energy is scheduled to report results for the fourth quarter of its fiscal year on Wednesday. Here is what you need to know:
REVENUE AND ORDERS: The German company is forecasted to post revenue of 8.65 billion euros ($9.25 billion) in the quarter from EUR9.19 billion in the year-earlier period, according to a company-compiled consensus. Orders are estimated at EUR8.22 billion from EUR12.23 billion.
NET PROFIT: Siemens is expected to book a net loss of EUR753 million from a profit of EUR244 million in the year earlier, the consensus estimates. The loss before special items is seen at EUR371 from a profit before special items of EUR564 million.
WHAT TO WATCH:
–GUARANTEES: Investors’ focus is expected to be on newly-outlined guarantees for long-term projects. The German government said it will grant Siemens Energy a EUR7.5 billion guarantee as part of lines totaling EUR15 billion. “We gather that the move is motivated by a need to seek guarantees to underwrite the growing backlog at the gas & power division, where demand is booming and profitability strongly growing–which customers are keen to see due to the issues at Siemens Gamesa–rather than a need to issue sizable equity or to ask the German state to bank-roll Siemens Gamesa losses,” Berenberg analysts said in a note.
–SIEMENS INDIA STAKE SALE: The German government said Siemens Energy and Siemens intend to negotiate the sale of shares in a joint venture that would lead to a cash inflow of around EUR2 billion for the German energy company. According to Bloomberg, Siemens Energy is considering selling a part of its 24% stake in listed affiliate Siemens India to former parent Siemens in efforts to shore up its balance sheet. A potential sale could help generate cash and alleviate pressure on debt, reducing the risk of a dilutive equity raise to retain the investment-grade rating, analysts at Citi said.
–FULL-YEAR PERFORMANCE & GUIDANCE: Results for fiscal 2023 are expected to be fully in line with guidance, Siemens Energy said last month, with the gas & power business continuing to perform well. At its troubled wind business, order intake and revenue are instead expected to be lower than market forecasts in fiscal 2024, while cash outflows should be higher as Siemens Gamesa continues to work through its issues. An update on the recovery path of the business, as well as on longer-term targets at group level, is expected to be given next week at the capital markets day.
Write to Giulia Petroni at giulia.petroni@wsj.com
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