Groundbreaking achievements in energy technology at Siemens Energy
Siemens Energy, the German energy technology company, reported record figures for orders received and order backlog in the third quarter of 2021. The company's order backlog reached a record high of 136 billion euros, a significant increase from the previous year.
New orders nearly doubled, with a 94% increase, indicating very strong demand in both domestic and export markets. This surge in new orders was primarily driven by two major orders from Siemens Gamesa in the offshore sector, amounting to a total of 16.6 billion euros.
The company's revenue grew 20% year-over-year, supported by healthy order execution and backlog. Net profit jumped 80% in the quarter. Operational margins improved significantly to 17.6% from 13.3% a year earlier, reflecting enhanced operational efficiency and normalized business levels after adjusting for one-time impacts.
Despite these impressive results, Siemens Energy's wind power division remains loss-making. U.S. tariffs have also affected the company, weighing on its order backlog. However, the business with gas and power grid technology is particularly robust for Siemens Energy.
Siemens Energy's third-quarter profit was boosted by a one-off effect of around half a billion euros. Even without this effect, the company would still have seen a profit. The company's profit for the first nine months of 2021 is 1.45 billion euros, slightly less than at the same time last year due to a one-off effect of over 1.7 billion euros in 2020.
The company's workforce has increased by around 3,000 and 1,000 more than a year ago. Siemens Energy now has 102,000 employees, including 27,000 in Germany.
Siemens Energy is on track for what could be its best year ever, despite challenges from U.S. tariffs and its still-struggling wind power division. The company aims to earn up to one billion euros in taxes this year.
The company's diverse portfolio across the energy value chain, including conventional and renewable energy technologies, enhances its resilience against sector challenges. Siemens Energy India committed to a Rs 280 crore phased investment to expand high-voltage switchgear manufacturing capacity to meet increasing demand domestically and globally.
In conclusion, Siemens Energy's robust order growth, strong execution, and strategic capacity expansion are driving its impressive performance in 2021, despite previous market challenges.
The record-breaking surge in new orders, as the text indicates, was primarily fueled by technology advancements within the offshore sector. The company's strategic investment in high-voltage switchgear manufacturing is also a testimony to the importance of technology, aiming to meet growing demand both domestically and globally.
