Offers relatively upbeat prediction for 2021
Siemens Energy will no longer participate in new tenders for pure coal-fired power plants.
The move comes just weeks after GE Power made a similar decision to get out of coal-fired power. Siemens Energy added that it will still meet the existing commitments for coal-fired power plant projects, including binding offers. It will also continue its CO2-reducing service and solutions business, such as combined heat and power (CHP) projects.
“Siemens Energy is now further analyzing with the requisite care what specific consequences this step will have for its employees and sites that are concerned,” the company said in a news release. “Siemens Energy will now discuss with its partners in the field of coal-fired power plant technology about the consequences of the decision for the partnerships.”
The decision to drop coal-fired power plants was announced during the company’s annual earnings report. Siemens Energy, which completed its spin-off from Siemens in September, reported a net loss of €390 million compared with a profit of €79 million for the previous-year period. Revenue fell 8% on year to €7.63 billion, while orders decreased 24% on year to €6.99 billion mainly due to postponed orders in the gas and power segment during the coronavirus pandemic, the company said.
The company was relatively upbeat about the outlook for 2021, saying revenue should increase between 2 and 21%. But that would only be possible without the continued impact of COVID-19.
The company said key projects during the fiscal year included an order for the seventh offshore wind farm grid connection in the North Sea, and an agreement on the first megawatt-level production facility for green hydrogen in China. Siemens Energy ended the fiscal year with an order backlog totaling €79 billion.
“I am proud how our Siemens Energy team managed the macroeconomic challenges, successfully executed the spin-off of our company while further streamlining our portfolio,” Dr. Christian Bruch, CEO of Siemens Energy AG. “We have fully achieved our fiscal year 2020 guidance and confirm our outlook for fiscal year 2021. With an outstanding and committed team we look forward to the transformation journey that lies ahead of us, as we are opening a new chapter as Siemens Energy.”