Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Spain
  4. Bolsas y Mercados Espanoles
  5. Siemens Gamesa Renewable Energy, S.A.
  6. News
  7. Summary
    SGRE   ES0143416115

SIEMENS GAMESA RENEWABLE ENERGY, S.A.

(SGRE)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 01/21 10:15:00 am
16.168 EUR   -14.68%
07:03aSIEMENS GAMESA RENEWABLE ENERGY S A : Pre First Quarter FY22 - Connection Details
PU
06:52aEUROPEAN MIDDAY BRIEFING - Stocks Tumble, Led by -2-
DJ
05:45aSIEMENS GAMESA : Bernstein maintains a Buy rating
MD
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Wind power risks becoming too cheap, says top turbine maker

11/24/2021 | 10:14am EST
FILE PHOTO: A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio

COPENHAGEN (Reuters) - The head of Siemens Gamesa warned on Wednesday that a decade-long race to bring down the cost of generating wind power could not continue, as it would reduce the financial muscle of turbine producers to continue investing in new technologies.

A boom in investments in green energy to address climate change has helped bring down the cost of wind power to a level where it can compete with fossil fuels like coal and natural gas.

"What we've clearly achieved is that wind power is now cheaper than anything else. But I believe we shouldn't make it too cheap," Chief Executive Andreas Nauen told Reuters.

In Europe, wind and solar currently are significantly cheaper than coal, natural gas and nuclear power, according to Bernstein research.

Demand for wind turbines is at a record high, driven by the green transition, but lower prices and increased competition have squeezed margins.

"We have probably driven it too far," Nauen said. The industry's ability to keep investing in new technologies and factories will be reduced if the drive to cut the cost wind power continues at the same rate, he added.

Wind turbine makers' operating margins are also being squeezed by rising costs stemming from the supply crunch and high prices for raw material such as steel.

Both Siemens Gamesa and its main rival Vestas have said they have been able to pass on part of the higher costs to customers, which is likely to be reflected in higher auction prices and power purchase agreements over time.

Earlier this month Vestas slashed its 2021 outlook for a second time this year, and now expects an operating profit margin of 4% versus 5-7% previously - a far cry from its long-term target of a 10% margin.

Siemens Gamesa has also pushed out the horizon at which it expects to hit its long-term margin target of 8-10% to 2024 or 2025, from 2023 previously.

Governments around the world are phasing out generous wind subsidies, opting for more competitive contract tenders, and favouring project developers that submit the lowest bids.

"We need to change auction systems in the future," Nauen said. He suggested criteria such as local job creation should be considered instead of focusing only on price.

(Reporting by Stine Jacobsen; Editing by Jan Harvey)


ę Reuters 2021
All news about SIEMENS GAMESA RENEWABLE ENERGY, S.A.
07:03aSIEMENS GAMESA RENEWABLE ENERGY S A : Pre First Quarter FY22 - Connection Details
PU
06:52aEUROPEAN MIDDAY BRIEFING - Stocks Tumble, Led by -2-
DJ
05:45aSIEMENS GAMESA : Bernstein maintains a Buy rating
MD
05:40aShares in Siemens Energy and its wind business tumble after profit warning
RE
05:33aSIEMENS GAMESA : UBS reiterates its Neutral rating
MD
04:54aSiemens Energy Tanks 10% as Supply Chain Issues Dim FY22 Outlook
MT
04:48aGlobal equity sell-off sends European shares sharply lower
RE
02:58aSiemens Gamesa promises improvement in turbine prices after slashing outlook
RE
02:40aSiemens gamesa ceo, asked about spinning off onshore business, s…
RE
02:38aSiemens gamesa ceo says "we from time to time look at what to do…
RE
More news
Analyst Recommendations on SIEMENS GAMESA RENEWABLE ENERGY, S.A.
More recommendations
Financials
Sales 2022 9 933 M 11 265 M 11 265 M
Net income 2022 -286 M -324 M -324 M
Net Debt 2022 902 M 1 024 M 1 024 M
P/E ratio 2022 -49,0x
Yield 2022 0,08%
Capitalization 12 887 M 14 613 M 14 616 M
EV / Sales 2022 1,39x
EV / Sales 2023 1,29x
Nbr of Employees -
Free-Float 32,8%
Chart SIEMENS GAMESA RENEWABLE ENERGY, S.A.
Duration : Period :
Siemens Gamesa Renewable Energy, S.A. Technical Analysis Chart | SGRE | ES0143416115 | MarketScreener
Technical analysis trends SIEMENS GAMESA RENEWABLE ENERGY, S.A.
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 23
Last Close Price 18,95 €
Average target price 22,64 €
Spread / Average Target 19,5%
EPS Revisions
Managers and Directors
Andreas Nauen Chief Executive Officer & Director
Beatriz Puente Ferreras Chief Financial Officer
Miguel Angel Lˇpez Borrego Chairman
Alan Feeley Chief Information & Cyber Security Officer
Antonio de la Torre Chief Technology Officer