Markus Tacke is fired with immediate effect as chief Executive of Siemens Gamesa. The OEM's board made the decision late Wednesday evening. Tacke's replacement is hired from among the company's ranks in the person of Offshore CEO Andreas Nauen.

"Andreas Nauen has successfully demonstrated his ability to handle complex projects in the past. He has extensive experience with listed companies in the renewables sector. We expect the new CEO to now stabilize the onshore area quickly," writes Siemens Gamesa Chair Miguel Angel López.

This announcement is made at the same time as the group reveals yet another annual guidance downgrade.

Based on "the assessment of management, project costs and the financial impact of Covid-19 disruptions, adjusted earnings and interest and taxes will be negative in the third quarter. The situation is so serious that, despite a positive Q4 result forecast, the "anticipated positive EBIT in the fourth quarter is not expected to completely offset the negative development for the full fiscal year," which for the company ends in October.

Major 2020 deficit

The board has not yet revealed who will take over Nauen's position as chief executive for the offshore unit, based in Brande, Denmark. On the other hand, the board did opt to hold a capital markets day on Aug. 27, when the long-term strategy will  be presented.

Tacke's dismissal occurs in both an eventful and highly challenging 2020 for Siemens Gamesa. Despite its consistently growing order book, the deficit has deepened because of, among other things, persisting problems in India, where the anti-contagion lockdown has added to the already mounting problems in achieving the country's announced capacity build-out as well as issues with project execution, not least in Norway.

Six months into its staggered fiscal year, the OEM registered a deficit of EUR 340 million. Taking currency fluctuations and various financial instruments into the equation, the deficit totaled to EUR 581 million in the interim report released in early May.

A few weeks later, some positive news arrived about the company's product offerings. Siemens Gamesa announced its new offshore wind turbine flagship with an effect of 14-15 MW. Within a few days, a conditional order of roughly 3 GW for the new machine arrived. The news of the largest of these orders, around 2.6 GW for Dominion Energy's offshore wind project of the coast of Virgina was immediately revealed alongside the news of Siemens Gamesa's coming stock listing.

Top-floor executive reshuffle 

The turbine maker's majority stakeholder, Siemens, which after buying Iberdrola's position now owns 67.1 percent of the OEM, will spin off its energy activities into a listed company, which beyond Siemens Gamesa will also include the German industrial conglomerate's gas and electrical division. The group will maintain a large share of the company, but will make 55 percent of the equity of available for stock investors.

There has also been some top-level disquiet at Siemens Energy.

Siemens' former crown prince, Michael Sen, once slated to take over the business, chose to leave the company in March along with Chief Financial Officer Klaus Patzak, reportedly because of disagreement on how much of the business would be listed. The company will instead be led by Christian Buch, hired from Linde, flanked by Maria Ferrao as CFO and Siemens CEO Joe Kaeser as proposed board chair.

English Edit: Daniel Frank Christensen