Early Redemption of State Guarantees
Siemens Energy has made a significant step towards financial independence by prematurely redeeming the state guarantees that were necessary during the crisis year 2023. This decision reflects the improved financial situation of the company and paves the way for future dividend payments and share buybacks.
Background
In 2023, Siemens Energy found itself in a difficult position, particularly due to issues in its wind division and high demands in project business. The federal government had to step in with state guarantees to secure the company’s existence. These guarantees amounted to over eleven billion euros and cost the company around 100 million euros annually in fees.
Early Redemption of Guarantees
Siemens Energy has now replaced these state guarantees with a new agreement with a banking consortium. A consortium of 23 international banks will assume guarantees worth nine billion euros for the next five years, without state backing. This measure demonstrates the growing confidence of the financial world in the stability and future viability of Siemens Energy.
Financial Development
The financial situation of Siemens Energy has significantly improved in the last two years. The company is aiming for a second consecutive annual profit and has substantially increased its margins and cash flow. This positive development allows Siemens Energy to redeem state guarantees early and focus on future investments and equity recovery.
Outlook
The premature redemption of state guarantees is an important step for Siemens Energy to strengthen its independence and detach from state support. This could potentially lead to a positive development of the stock price and encourage investors to invest in the company. Additionally, the possibility of dividend payments and share buybacks opens a new way to reward shareholders and optimize equity.