Siemens Energy replaces 11 bln eur government-backed funding facility
FRANKFURT, June 5 (Reuters) - Siemens Energy on Thursday said it had replaced a 11 billion euro ($12.6 billion) government-backed funding facility that was put in place in 2023 to stabilise the power equipment maker, a key step to restore its ability to pay dividends.
The government had to backstop billions of euros worth of project guarantees in late 2023 to ensure Siemens Energy - a critical player in the energy infrastructure industry - could fulfil its order book in the wake of major quality issues at its wind turbine business.
"The federal government's counter-guarantee was instrumental in 2023 during a challenging phase to secure our strong anticipated growth," Siemens Energy's Chief Financial Officer Maria Ferraro said.
One of the conditions of the facility was the suspension of dividend payments at Siemens Energy.
"Due to our performance in the past two years and the positive market environment we were able to improve margins, cash flow and strengthen our balance sheet," Ferraro said.
"This enabled us to replace the facility before the end of our fiscal year and deliver on our commitment as promised."
Siemens Energy Chief Executive Christian Bruch last month said that replacing the government facility would enable the company to resume dividend payments for the 2026 fiscal year.
($1 = 0.8701 euros)
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