Siemens Energy’s CEO Christian Bruch has reacted to the premature release of state guarantees for the energy technology company. “The guarantees have cost a lot of money and, in addition, have restricted our dividend capacity” Bruch told the Handelsblatt (Friday edition). The company has paid around 100 million euros per year for the guarantees. “That was a good deal for the federal government” he said.
Following operational and financial progress at Siemens Energy, an international banking consortium has taken over the guarantees. The company needs these to be able to fulfill its large order book.
Siemens Energy’s stock price dramatically plummeted when the negotiations with the federal government were made public in the autumn of 2023. “I certainly underestimated how the news would be misinterpreted – it was a federal guarantee, not a rescue shield like for some other companies” Bruch said. “But if the avalanche once starts rolling, it’s hard to stop.”
The CEO does not believe in a repeat of the situation in the near future. “We have an extremely good order book and are well-positioned in our business” Bruch explained. “In that sense, I don’t see it at the moment.