Offshore wind contraction hits Siemens performance

GERMANY: Siemens has said saw a "significantly lower" revenue from its offshore wind division in the latest quarter, denting the wind division's margin.

Siemens offshore business contributed a smaller proportion of revenues
Siemens offshore business contributed a smaller proportion of revenues

While revenue in the division climbed 7% to EUR 1.4 billion, the German manufacturer said its 2.4% margin would have been higher were it not for a drop off in the offshore business.

In addition, production costs were "higher than average" Siemens said. While profit was up to EUR 38 billion from EUR 21 billion, this is against a weak comparable, with the same period last year including a EUR 91 million charge related to the refitting of turbine blades.

However, orders for the wind division provided a more positive note, topping 2GW up from just 631MW previously. Siemens said this was partly due to the 600MW order for Gemini offshore wind farm in Dutch waters, which fell in the quarter.

The power transmission division reported a loss of EUR 188 million, which was partly due to EUR 128 million in project charges related to offshore wind grid connections.

Overall, the energy business saw its revenue fall 8% to 6.1 billion, while profit was down to EUR 405 million, from 430 million in the previous year.

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