Siemens Energy rebounds 12.7% in the stock market after ensuring that it does not need a state rescue

The energy technology company Siemens EnergyGamesa’s parent company, rebounded 12.7% on the Frankfurt Stock Exchange this Monday after ensuring that it does not need a state bailout.

Siemens Energy shares rose 12.7% today, to 8.43 euros, at the close of trading in Frankfurt after the chairman of its supervisory board, Joe Kaeser, assured that the company does not need an injection of money from the German State , but “only” guarantee.

Kaeser acknowledged to the German media “Welt am Sonntag” that the task is “big“in relation to the company’s position and that panic”it is unavoidable” if you take into account that the market “he is already very nervous”.

“The talks with the federal government are simply about guarantees to support Siemens Energy’s growth. The company clearly does not need money from the State“, Kaeser highlighted in his statements to the German media.

Siemens Energy recognizes problems in the integration of the wind energy company Gamesa, which management must now resolve.

Kaeser also said in the Sunday interview that they have problems with the wind energy business.

“In wind the situation is very serious. The entire sector has horrendous losses. It is a young industry that has not been consolidated until now.”said Kaeser, who was CEO of the industrial and technology group Siemens from August 2013 until February 2021.

“We then tried to start consolidation with the merger with Gamesa. Poor integration and numerous product announcements prevented success and, together with the problems in the sector, led to a very serious situation in the wind energy subsidiary, which now hinders all of Siemens Energy. Management must now solve this concentrated and sustainable problem”according to Kaeser.

Siemens Energy plummeted 35.5% on the stock market last Thursday after reporting that it was negotiating guarantees for loans with banks and the German Government, but on Friday it recovered 9% and today 12.7%.

Investors reacted again with panic to these financing problems in the German company and some analysts also fear that it will have to carry out a capital increase.

But some analysts confirmed their buy recommendations for the shares on Monday because they foresee high returns, although they have lowered the target price.

Siemens Energy shares have lost more than 50% on the stock market so far this year due to problems in the wind energy business, which have led it to have to revise downwards its forecasts for 2023 several times, when It expects to have suffered losses of around 4.5 billion euros.

At the end of June Siemens Energy, which has a market capitalization of only about 5.5 billion euros, also suffered a stock market crash of more than 37% after revising its forecasts downwards due to problems with its subsidiary Gamesa.