Monday, June 27 2022 Sign In   |    Register

News Quick Search



Front Page
Power News
Today's News
Yesterday's News
Week of Jun 20
Week of Jun 13
Week of Jun 06
Week of May 30
Week of May 23
By Topic
By News Partner
Gas News
News Customization


Pro Plus(+)

Add on products to your professional subscription.
  • Energy Archive News

    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    Gamesa Shares Surge as Siemens Energy Confirms Mulling Tender Offer

    May 18, 2022 -


      By Geoffrey Smith -- Shares in Siemens Gamesa Renewable Energy (BME:SGREN) surged to their highest in nearly a month on Wednesday after its German majority owner, Siemens Energy (ETR:ENR1n), confirmed media reports that it is considering a tender offer to bring the wind turbine maker completely under its control.

      Siemens Energy's statement added no further details beyond saying that nothing was guaranteed.

      Gamesa stock rose 11.5% in Madrid but is still trading at less than half of its 2021 peak. Siemens Energy stock, meanwhile, rose 2.8%.

      Gamesa is perhaps the most important part of Siemens Energy, a segment with a strong secular growth outlook due to the worldwide shift away from fossil fuels to renewable sources of electricity generation. Four countries bordering the North Sea, Belgium, the Netherlands, Germany, and Denmark, announced on Wednesday that they intend to have 150 gigawatts of offshore wind turbine capacity - Gamesa's strongest segment - installed by 2050.

      By contrast, most of the rest of Siemens Energy's business consists largely of making fossil fuel power stations, a business in long-term decline in the developed world. Gamesa's problems have been largely responsible for the 20% decline in the company's stock price since its German conglomerate parent spun it off two years ago.

      Gamesa's financial problems have worsened steadily over the last two years as surging commodity prices and various shortages of essential components have squeezed its margins hard.

      Last month, Gamesa had launched a restructuring plan to try to address its problems, which have led it to issue three profit warnings in the last year and make delay to a number of important projects.

      Gamesa isn't the only turbine maker in trouble. Earlier this month, Danish rival Vestas Wind Systems (CSE:VWS) said it expected to lose money before interest and taxes this year despite record demand for its products. It cut its dividend as a consequence.

      © Reuters.


    Other Articles - International


       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.