Siemens Energy shares plunged 31% on Friday morning after the company scrapped its profit forecast.
Wolfgang Rattay | Reuters
Shares of Siemens Energy tumbled more than 32% on Thursday after the company sought guarantees from the German government.
“The strong growth in order intake, particularly in the former Gas and Power business areas, leads to a rising need of guarantees for long-term projects,” the company said in a statement.
“Considering this requirement, the Executive Board is evaluating various measures to strengthen the balance sheet of Siemens Energy and is in preliminary talks with different stakeholders, including banking partners and the German government, to ensure access to an increasing volume of guarantees necessary to facilitate the anticipated strong growth,” it added.
The wind power giant made headlines earlier this year, when it scrapped its profit forecast and warned that costly failures at wind turbine subsidiary Siemens Gamesa could drag on for years.
“The wind business Siemens Gamesa is working through the quality issues and is addressing the offshore ramp up challenges as announced in the third quarter communication for fiscal year 2023,” the company said.
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