Siemens Energy posts full-year loss despite profit in Q4

German firm Siemens Energy has ended the second consecutive fiscal year since it went public deep in the red, according to financial data for 2022 published on Wednesday, reported dpa.

Even though the power company saw a profit for the fourth quarter, it reported a 15.5%-increase in losses to €647 million ($671 million) between October 2021 and September 2022.

Siemens Energy predicted losses to shrink in the new fiscal year.

The fourth quarter profit was mostly due to the fact that the firm's Spanish subsidiary Siemens Gamesa Renewable Energy, a wind engineering company, had also made a profit thanks to projects in southern Europe.

"In a year full of challenges, our gas and power segment again achieved solid results," said Siemens Energy chief executive Christian Bruch, adding that Siemens Gamesa still lagged behind expectations.

Bruch cited Siemens Energy's withdrawal from Russia, which had a negative impact of around €200 million on the result for the year as a whole, as one of the major challenges for the group.

The withdrawal from the Russian market also made itself felt in turnover, which shrank by 2.5% on a comparable basis to €29 billion. Orders, on the other hand, continued to rise, reaching a record €97.4 billion - more than three times the annual turnover.

In order to improve things at Gamesa, Siemens Energy is looking to buy the Spanish subsidiary completely and take it off the stock exchange. An offer for the outstanding 32.9% is currently underway and is expected to end on December 13.

Shareholders will also have to take a hit in view of the losses and challenges in the group. The board of directors does not intend to propose a dividend for the past financial year.