Energy giants Siemens Gesa and SSE have agreed on a $ 628 million deal and profit warnings.

Details of the agreement between the SSE and SGRE revealed the first results for the second quarter, with revenues of nearly 2.2 billion euros and losses of about 304 million euros.

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Siemens Gesa Renewable Energy has agreed to sell its Southern European assets at the SESE headquarters in Scotland for 80 580 million (about $ 628 million), and about 40 turbine workers have moved to SSE as part of the deal.

In a statement issued on Tuesday, SGRE said the sale would include “coastal wind projects” in Greece, Spain, France and Italy.

The capacity of these projects – according to Siemens Gamesa “in various stages of development” – will reach 3.9 GW. There is also the possibility of developing accompanying solar photovoltaic projects with a capacity of up to 1 GW.

Siemens Gamesa CEO Joe Eckholt said the announcement “demonstrates the company’s ability to grow its portfolio and increase value.”

Stephen Weller, managing director of SSE Renewers, said the project portfolio “provides a true springboard for our expansion plans in wind, solar, battery and hydrogen.”

Commenting on the sale, Justice Laura Hoye, a justice analyst at Hargreves Lansdaw, said:

“On top of that, it looks like the right game – the transition to clean energy is a clear direction and the team’s performance has improved over the last few months.”

However, she added: “The presence of a lot of wind in the sails does not guarantee soft seas.”

“Performance in the SSE Renewable Products Section has left much to be desired this year, and although things appear to be improving, the product is still below expectations.”

“Investing in an as yet uncertain business is a risky venture – but now it seems to be the only way to grow.”

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Details of the agreement between the SSE and SGRE revealed the first results for the second quarter, with revenues of nearly 2.2 billion euros and losses of about 304 million euros.

The company said its performance “has had a significant impact on production and performance issues”. He went on to say that the direction for the fiscal year 2022 was “no longer valid” and “under review.”

It was a challenging time for Siemens Gamesa. He said revenue for the fiscal year 2022 is expected to fall between 9% and 2% per annum, which has already set a contract between 7% and 2%.

The company improved its profit margin or EBIT margin to -4% and 1% before purchasing pricing and integration costs and restructuring costs, up from 1% and 4% previously.

On Tuesday, the company said it would “continue to earn 9-% and -2% of year-on-year revenue growth and that the EBIT pre-PPA and I&R spending margins we met earlier are at a low level.” Including positive impact: Property disposal refers to the new agreement with SSE.

Meanwhile, the SSE said at the end of March that it expects “2021/22 adjusted earnings per share of at least 90 cents per share compared to the previous guideline.”

Siemens Energy, which owns 67 percent of Siemens Gamesa, announced on Tuesday that it is reviewing its 2022 budget guidelines due to SGRE announcements.

The company also pointed to other head wind. “Siemens Energy’s working conditions have become even more challenging because of the war in Ukraine and the sanctions imposed on Russia,” he said, “respecting all sanctions and stopping any new trade in Russia.”

“As a result of the war, Siemens Energy” began to have an impact on revenue and profitability, “he said, adding that” existing supply chain constraints are deteriorating. “

“Due to the dynamic growth of the embargo, the administration has not been able to fully assess the impact on the fiscal year, and it will not be able to avoid further negative impacts on revenue and profitability,” he said. .

At noon, Siemens Energy’s share fell by 1.5 per cent. Shares of Siemens Gamesa rose 5.4% after the lower opening. If all goes well, the agreement between SGRE and SSE will be finalized by the end of September.

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