Offshore grid costs eat into Siemens profit

Strong increase in turbine orders boosts outlook

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The cost of building Germany’s offshore electricity transmission network continues to curtail Siemens' profits, with €84m in charges linked to offshore wind cable projects included in the company’s second quarter (Jan-March 2013) results

Siemens' headline figures feature a slight decline in group revenue and profit for the first half of the year (Oct 2012-March 2013). The company’s wind power business has also recorded a fall in revenue and profit. Wind power Q2 revenue was down 19% to €1.0m and profit declined by 59%, to €53m.

Much more positively, new offshore wind turbine orders jumped by 200% during Q2, with Siemens emphasising the importance of an 80 turbine order and ten-year service agreement for Butendiek offshore wind farm. At the end of Q2, Siemens’ wind power order book totalled €3.3bn. This figure does not include a 154-turbine order from Dong Energy, announced last month. This will see Siemens supply its 6MW machines for the Gode Wind 1-3 wind farms.


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