Banc Sabadell | Siemens Gamesa CEO has assured that 10-15% of the projects with profitability problems (they would be registering losses) related to the new 5.X platform will extend to 2024. This compares with the previous estimate which put these projects’ definitive exit from the portfolio in 2023.
We recall that the projects in the company’s portfolio with profitability problems linked to the 5.X platform account for some 2 billion euros of the portfolio (32% of the total onshore at end-2021 and 6% of the total company). They are mostly located in Brazil and Sweden.
Valuation:
This news has a negative slant, to the extent that it would impact the recovery of the firm’s operating margins, delaying achieving breakeven at adjusted EBIT level. However, the company had anticipated this would not happen during 2023. In any event, we do not expect any significant reaction from the stock price as long as it is influenced by the takeover bid launched by its parent (Siemens Energy) at 18,05 euros/share.
Siemens Gamesa: ACCEPT BID. T.P. 18,05 euros/share.
