Siemens Energy AG said Wednesday that it swung to a profit in the fourth quarter of its fiscal year and that it expects net loss to reduce in fiscal 2023, but won’t propose a dividend due to current and future challenges.
The German energy company
ENR,
reported an after-tax profit of 378 million euros ($391.7 million) compared with a loss of EUR383 million for the same period a year ago.
Revenue rose roughly 6% on year to EUR9.18 billion, while orders increased 27% to EUR12.23 billion.
Siemens Gamesa said that it registered strong demand at its gas-and-power segment countered by operational problems at Siemens Gamesa Renewable Energy SA in the period.
The company expects a sharp reduction of net loss in fiscal 2023 compared with fiscal 2022, when it booked a loss of EUR647 million. It also expects comparable revenue growth excluding currency translation and portfolio effects of between 3%-7% in fiscal 2023 from negative 2.5% in fiscal 2022. Profit margin before special items is seen at 2% to 4% from 1.2% in fiscal 2022.
“High inflation, material costs and supply chain issues will not go away in this coming year,” Chief Financial Officer Maria Ferraro said.
Free cash flow before taxes is expected in a negative range of low-to-mid triple-digit million, according to the company.
Write to Giulia Petroni at giulia.petroni@wsj.com
