The latest revelations of problems at Siemens Gamesa

 June 23, 2023

The latest revelations of problems at Siemens Gamesa are a blow not just to the stricken turbine OEM and its boss Jochen Eickholt, who is aghast by what is unfolding, but to one of the biggest players in the global energy transition, parent group Siemens Energy.

Siemens Energy CEO Christian Bruch and Eickholt, the Siemens Gamesa chief executive, made clear that the full scale of the technical issues afflicting the OEM’s legacy fleet is still being assessed, as they revealed a $1bn-plus bill for newly uncovered problems, not to mention issues with its offshore ramp-up and slower-than-hoped-for progress with the manufacturer’s turnaround plan.

“I thought Siemens Gamesa would be the smaller problem,” Bruch said ruefully as he reflected on the challenges facing Siemens Energy’s wider business that is set to play a key role equipping energy transition projects around the world.

Not so. Siemens Gamesa’s latest woes wiped 30% off Siemens Energy’s share price early on Friday as it became clear that it could be wrestling with these issues for years to come.

The management team remained bullish that it can, eventually, get to grips with the problems and get Siemens Gamesa on a smooth path to play its part in the energy transition, on and offshore.

But the fear of further surprises down the road from a company that has already brought several doses of bad news to the market is likely to have the wind industry’s nerves over one of its biggest players jangling for some time to come.

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