Siemens books fierce growth in profit margin for wind

The Wind Power and Renewables division at German conglomerate Siemens showed limited revenue growth last year but also major growth opportunities in the future, whereas Denmark's Vestas recently took a hit.

Revenue at Siemens in 2016 came to EUR 5,976 million in its wind power and renewables division. Modest growth of EUR 316 million – 5.6 percent – compared to the previous year. On the other hand, earnings grew much more as the conglomerate's wind business landed a net result of EUR 464 million, up from EUR 160 million in 2015. This constitutes gains of 190 percent and a profit margin of 7.8 percent, according to the group's annual report, which runs till September and from which key figures were published this Thursday morning.

As such, the wind turbine business seems to have grown out of its past problems involving turbine parts. Problems that became exceptionally clear in 2014 when the profit came to a modest EUR 6 million which also caused problems for last year's figures that landed far below the group's own expectations. However, 2016 showed better delivery than anticipated, at least in revenue where the estimate from Siemens is EUR 5 billion.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from EnergyWatch

WindEurope warns against negative auction bids

If more countries introduce negative bids, where firms pay to establish wind projects, it could lead to higher electricity bills or more pressure on the supply chain, says the industry association.

BW Offshore halved bottom line in Q1

The Norwegian firm reports decline in several items compared to the same quarter of 2021 but predicts fine advancement in the rest of 2022, for which both floating wind projects and high energy prices show promise.

Equinor exits Russia

Norwegian oil company Equinor has taken its final step out of the Russian market by transferring joint venture assets to Rosneft.

Further reading

Related articles

Latest News

See all jobs