Siemens Energy (ENR1n.DE) said on Wednesday it would not pay a dividend on its annual results, blaming a widening net loss and its struggling wind turbine division Siemens Gamesa (SGREN.MC).
The company's net loss for the year ended Sept. 30 came in at 647 million euros ($669 million), also burdened by a 200 million charge due to the restructuring of its Russian division, which it has partly sold.
Siemens Energy owns 67% in Siemens Gamesa and has launched a 4.05 billion euro bid, expected to run until Dec. 13, to buy the rest in an attempt to better integrate the division and fix quality issues at a next-generation turbine model.
"In a challenging year we managed to again deliver solid results in our Gas and Power business, while Siemens Gamesa did not meet expectations," Siemens Energy Chief Executive Christian Bruch said in a statement.
"The integration of Siemens Gamesa will help to improve profitability at our wind business and allow it to deliver to its full potential."
Fourth-quarter sales were up 5.9% at 9.2 billion euros, the company said, higher than the 8.8 billion Refinitiv estimate. The company added that, at 97.4 billion euros, its order backlog had reached a new record. Quarterly results, particularly order intake, should provide sufficient tailwind for the company's shares to rise further, a local trader said, following a 27% rise since October.
Shares in the company -- which made headlines earlier this year due to its servicing role at the Portovaya compressor station, which powered the now defunct Nord Stream 1 gas pipeline -- were indicated to open flat.
