Siemens Energy: Ideal candidate for “buy on bad news”

By Sven Jösting

January 16, 2024

Image titel: Siemens Energy buy on bad news

Sources: KI-Correct Conception GmbH

Siemens Energy: Ideal candidate for “buy on bad news”

What should be read from: “Siemens Energy rescued.” Was the company on the verge of bankruptcy? By no means. It was about securing orders – and there the company has a volume of over 112 billion euros in the books – through guaranties that were no longer available after the spin-off from parent company Siemens. The extremely high loss of 4.6 billion EUR for the past financial year is based on the ailing wind subsidiary Siemens Gamesa. There were already provisions made for this, though, and through the sale of the participation in the Indian subsidiary in the amount of 18 percent for 2.1 billion EUR by Siemens, enough capital is available to stem the losses. Now the banks (with 7.5 billion euros partly reinsured by the federal government) and former parent company Siemens will lay out a total of 15 billion EUR in guaranties for Siemens Energy. The company is paying a customary commission for this. Whether these guaranties will ever have to be used may be doubted – they are pro forma collateral.

Shares in the Indian subsidiary go to Siemens

How massively Siemens Energy is undervalued at the stock exchange is shown by a glance at the Indian subsidiary. In India, Siemens Energy holds about 25 percent in Siemens India Ltd., in which parent company Siemens is also a participant. Here comes the unbundling: Siemens is assuming 18 percent plus 5 percent as collateral, among other things, for the fee for the use of the naming rights. To put it positively: The more collateral in the form of guaranties, the more orders can be taken in and at the end of the day money earned. On the other hand: If Siemens Energy had not been able to provide the collateral (guaranties), rating agencies might have lowered the credit rating, which would have had additional costs (increased interest rates for example) as a consequence.


That Siemens Energy must pay 250 million euros every year to the parent company just to have “Siemens” in its name seems like a rip-off. Because with 25 percent of the share capital of Siemens Energy, Siemens has a market capitalization of only 2 to 2.5 billion EUR, in relation to the 250 million EUR annual fee and with it a secure return in the amount of over ten percent on the part of Siemens. It does not matter whether Siemens Energy makes a profit or loss. The federal government as well as Siemens and participating banks have worked calmly to present the guaranties – you can individually evaluate the projects that Siemens Energy holds in its books.

Difficult times for the entire wind energy sector

Poor figures for the wind power activities of Siemens Gamesa applies to almost all manufacturers in the wind industry. There were prices and conditions that led to losses (higher interest rates, problems in the supply chain, raw material prices, calculations). On top of that were quality and technical problems. Chinese suppliers are sitting in the driver’s seat, because they produce much more cheaply and offer other financing models. Here in Europe, you can only threaten with restrictions and entice with subsidies, if the production is taking place here.


Parent company Siemens self-interested

If Siemens Energy Formerly had letters of comfort from parent Siemens (still holds around 25.1 percent plus another five to six percent indirectly in the Siemens pension fund), the company must now demonstrate these. We’re talking about a volume of 15 billion euros, with which a third of the order volume of 112 billion euros (information from the company) can be hedged. However, the situation is that Siemens Energy did not need capital to be protected from bankruptcy, as the case once appeared at TUI or Commerzbank. The government was directly involved and contributed equity. At Siemens Energy, it was a matter of pure guaranties for existing orders.

Summary: Do not be alarmed. Siemens Energy is, despite the problems of subsidiary Gamesa, well positioned, earns money in important areas and can still be seen as a growth story in the topic of regenerative energy and hydrogen in many applications. The current problems are being solved. In 2026, there should again be a profit for the company as a whole – so Siemens Gamesa will also have a positive contribution then. “Buy on bad news” is the only conclusion that can be drawn from the current situation.


Each investor must always be aware of their own risk when investing in shares and should consider a sensible risk diversification. The FC companies and shares mentioned here are small and mid cap, i.e. they are not standard stocks and their volatility is also much higher. This report is not meant to be viewed as purchase recommendations, and the author holds no liability for your actions. All information is based on publicly available sources and, as far as assessment is concerned, represents exclusively the personal opinion of the author, who focuses on medium- and long-term valuation and not on short-term profit. The author may be in possession of the shares presented here.

Kategorien: Germany

Here are interesting and current articles on the topic of hydrogen – stocks and the stock market!

Economic prospects for companies in the hydrogen sector | Future, stocks & hydrogen companies on the stock exchange and more…

Which hydrogen companies will prevail in the competitive market in the long term? Get tips and cartwheels and learn more about risks or opportunities. Our stock market specialist and expert author Sven Jösting reports critically, independently and competently.

Apr 11 2024

Bloom Energy convincing in the long haul

Bloom Energy is planning a cooperation with Shell to use its SOEC technology for the large-scale...
Apr 11 2024

Ballard – Prospects better than current market valuation

The share price of Ballard Power is at an all-time low. The published figures for the fourth...
Mar 18 2024

Search for the ideal hydrogen storage

Interview with Thomas Korn, CEO of water stuff & sun Startup company water stuff & sun has...
Mar 15 2024

Is exponential growth slowing down?

Fuel Cell Industry Review 2022 Year 2022 saw fuel cell shipments creep up over 2021 numbers,...
Mar 11 2024

On the way to becoming a green hydrogen partner

Oman aims to score points with H2 infrastructure Wind, sun and loads of expertise – these...
Mar 07 2024

We can master a scale-up for green hydrogen

Interview with Dr. Kai Fischer, Director at RWTH Aachen The efficient scaling of green hydrogen...
Mar 07 2024

Frustration over continuing uncertainties

Interview with Jorgo Chatzimarkakis, CEO of Hydrogen Europe There is a lot that needs sorting out...
Mar 05 2024

“If ever there was momentum for hydrogen, it is now”

Interview with Dr. Jochen Köckler, chairman of Deutsche Messe “We’re bringing people together.”...
Feb 28 2024

H2Direkt: Blueprint for heating with pure H2

The energy providers Thüga und Energie Südbayern (ESB) as well as Energienetze Bayern have...
Feb 26 2024

Just switch over?

Hydrogen in the existing natural gas network Whether hydrogen contributes to the clean heating...
Feb 26 2024

Pilot plant for coating bipolar plates

At Fraunhofer FEP (Fraunhofer-Institut für Organische Elektronik, Elektronenstrahl- und...
Feb 20 2024

55 MW electrolyzer to decarbonize Saarland

Hydrogen Regions series: HydroHub Fenne living lab The power plant site in Fenne, Völklingen, a...
Feb 20 2024

Chicken feathers as FC membrane material

Feathers from chickens or other poultry could in the future help make fuel cells more effective...
Feb 15 2024

SMEs demand more security

Guest article by André Steinau, CEO of GP Joule Hydrogen After all, the Ampel Coalition leading...
Feb 15 2024

Accelerated expansion of renewable energies

RED III is here – Elsewhere, the wait continues Progress is being made at EU level – albeit...
Feb 12 2024

Picea 2 relies on lithium instead of lead

HPS presents new product generation The company HPS Home Power Solutions has unveiled a new...
Feb 12 2024

H2 production by photocatalysis

The direct generation of hydrogen from sunlight has long been considered the most elegant solution...
Feb 05 2024

Regional instead of international

Hy-Fcell has it difficult asserting itself The aspiration of Landesmesse Stuttgart with Hy-Fcell...
Feb 01 2024

Hydrogeit Verlag turns 20 years old

Hydrogeit Verlag is proudly celebrating its 20th anniversary as a renowned specialist publisher in...
Jan 26 2024

Stracke other H2Now managing director

BMV Energy GmbH is entering the market as another player in hydrogen refueling stations. The...


Submit a Comment

Your email address will not be published. Required fields are marked *