SIEGY - Siemens Energy extends investigation into troubled wind turbine unit

2023-07-07 08:35:58 ET

Siemens Energy ( OTCPK:SIEGY ) ( OTCPK:SMEGF ) reportedly has set up a task force and a supervisory board committee to establish the scope of deepening problems at its crisis-ridden wind turbine division that has triggered a massive drop in the stock price .

The groups will add scrutiny on top of the company's ongoing review, which reportedly has found so far that the flaws are limited to the 4.X and newer 5.X onshore platforms at the Gamesa unit.

The precise number of turbines needing repairs remains unclear, but the problem may affect 800 5.X turbines, of which 100 have been installed, and likely is more common in machines on the 5.X platform than the older 4.X platform.

The latest problems caused Siemens Energy ( OTCPK:SMEGF ), in which Siemens AG ( OTCPK:SIEGY ) still owns a direct 25.1% stake, to pull its 2023 profit outlook and flag more than €1B in costs to fix quality issues.

Bernstein analysts, outlining their bear case scenario for Siemens Energy ( OTCPK:SIEGY ) ( OTCPK:SMEGF ), said the company's troubles could be seen as "teething problems of an arms-race to expand blade diameter," dubbing the issue a potential " turbinegeddon " for the wind energy sector.

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