- Heavy shipment of the first HL-class with 50 Hertz frequency sets sail for the UK
- Powerhouse unit from Berlin heads for one of the world’s most efficient combined cycle power plants
The largest, most powerful, and most efficient heavy-duty gas turbine that Siemens has produced to date was loaded onto an inland cargo ship today in Berlin, where it set off on its journey for Keadby, Lincolnshire, in the UK to be tested in a power plant of UK energy generator SSE Thermal. Built by Siemens Gas and Power in its Berlin factory and destined for the 50-Hertz market, the powerhouse known as SGT5-9000HL measures 13 meters in length, five meters in height, five meters in width, and weighs nearly 500 metric tons. After the recent first fire and synchronization to the grid of its first 60-Hertz version in a power plant in the United States, Siemens reports this second milestone for its latest HL-class within several weeks.
- Revenue was €14.2 billion, nearly level with the same quarter a year ago, as increases at Siemens Healthineers and Mobility offset a decline at Digital Industries; orders declined 8%, to €15.1 billion, on sharply lower volume from large orders at Mobility
- On a comparable basis, excluding currency translation and portfolio effects, revenue declined 1% and orders came in 9% lower; the book-to-bill ratio of 1.06 remained well above one
- Adjusted EBITA Industrial Businesses was significantly lower at €1.6 billion, with all industrial businesses showing effects from the COVID-19 pandemic; Adjusted EBITA margin Industrial Businesses of 12.1% was held back also by severance charges of €0.2 billion, taking 1.2 percentage points
- Net income, including a loss of €0.3 billion from discontinued operations, was €0.7 billion compared to €1.9 billion in Q2 FY 2019, which benefited from income of €0.2 billion from discontinued operations as well as a lower tax rate; basic earnings per share (EPS) declined to €0.80
- Given the current situation, we can no longer confirm our original guidance for fiscal 2020; for our new guidance, see page 5 of this document
At the end of the second quarter of fiscal 2020, Gas and Power and Siemens Gamesa Renewable Energy (SGRE) were classified as held for disposal and discontinued operations. Prior-period amounts are presented on a comparable basis.
- Revenue stable, orders below prior-year level
- Order backlog at €69 billion, further €81 billion at Siemens Energy
- Outlook relativized due to COVID-19
- Timeline for spin-off of energy business confirmed
- Share buyback on hold due to spin-off
- Spin-off of Flender planned
Despite the clear
impact of the COVID-19 pandemic, Siemens AG performed solidly in the second
quarter of fiscal 2020. Revenue remained nearly unchanged, while net income
declined to €697 million compared to the strong prior-year quarter. Orders were
down primarily due to a lower volume from major orders at Siemens Mobility
year-over-year. In view of the current situation, Siemens will no longer
confirm its original guidance for fiscal 2020. Nonetheless, the company sees
itself well positioned both operationally and strategically for the coming
quarters. Implementation of Siemens’ Vision 2020+ strategy is right on track,
and the company is making faster progress than expected in achieving its cost
targets.
- Siemens Gas and Power to supply three 33-MW industrial gas turbines to Ascend’s Decatur, Alabama facility
- The project will enable the chemical materials manufacturer to increase operating efficiency and reduce its environmental footprint
Siemens Gas and Power was recently selected to provide three 33-megawatt (MW) SGT-700 industrial gas turbines, including a Long-Term Program (LTP), with Ascend Performance Materials’ nylon intermediate and specialty chemicals facility in Decatur, Alabama. This project will allow Ascend Performance Materials to retire assets that currently provide process steam for the facility. The shift to gas turbines for steam generation is part of Ascend’s long-term sustainability strategy to improve its environmental footprint and accelerate the growth of expanding its core businesses.
- Two SGT-400 gas turbine compression packages sold for U.S. pipeline service
Siemens Gas and Power was awarded a contract to supply two SGT-400 gas turbine compression packages for Midcoast Energy, LLC’s CJ Express pipeline expansion project in east Texas. WHC Energy Services, supported by Universal Pegasus International, will be the engineering, procurement and contracting (EPC) provider for the pipeline expansion project.
- Siemens Managing Board decides to form worldwide aid fund to help relieve
and combat the coronavirus pandemic
- Siemens to match all funds donated
by employees
- Fund to supplement numerous aid
programs already in place at international Siemens units
- Company and employees aim to help people stricken by the COVID-19 pandemic worldwide
- Entire Managing Board joins in donation campaign
- President and CEO lays foundation by donating €1 million
Effective immediately, the Managing Board of Siemens AG has decided to set up a COVID-19 aid fund. Under the auspices of the community-serving nonprofit organization Siemens Caring Hands e.V. (“Caring Hands”), this aid fund is to provide support, without red tape, to relief organizations and medical facilities as well as to individuals impacted by the COVID-19 crisis worldwide.
- Charter of Trust companies are helping with cybersecurity for telework
- Some 130,000 Siemens employees worldwide are working from home due to
the corona crisis
To slow the spread of the coronavirus, millions of people around the world have been working from home for about three weeks now – including more than 100,000 Siemens employees. Siemens and 16 other global companies from the Charter of Trust (CoT) initiative have developed eight tips for boosting cybersecurity so that employees can work just as securely from home as they do at the office. Their recommendations are meant to help ward off hacker attacks and enable companies to maintain business continuity. These tips range from switching off voice-controlled devices and covering webcams to not mixing personal and business use of devices. All recommendations have been published on the Charter of Trust website: bit.ly/39BB8Gv.
- Cooperation agreement on using “green hydrogen” and promoting sector coupling
- Joint projects for the conversion of power plants
- Share of “green gas” to be gradually increased
Today,
Uniper and Siemens Gas and Power signed a cooperation agreement for the
development of projects on the decarbonization of power generation and
promoting sector coupling. It extends the long-standing partnership between the
two companies. It is important to look at the energy, mobility and industry
sectors together, because they all can and must contribute to reducing
greenhouse gases. One focus of the planned cooperation is the production and
use of “green hydrogen” – in other words, hydrogen from renewable energy
sources. The companies intend to implement projects in this field together,
addressing the entire value chain.
- Joe Kaeser is not pursuing a further contract extension as President and CEO of Siemens AG and is to be proposed as Chairman of the Supervisory Board of Siemens Energy.
- Roland Busch has been named President and CEO of Siemens AG and is receiving a new contract for an additional five years. He is already to assume overarching responsibility for the Operating Companies Digital Industries, Smart Infrastructure and Mobility as of April 1, 2020.
- Christian Bruch, EVP at Linde plc, to become new CEO of the Gas and Power Operating Company and designated CEO of Siemens Energy.
- Maria Ferraro, CFO of the Digital Industries Operating Company, to become new CFO of Gas and Power and designated CFO of Siemens Energy.
- Michael Sen and Klaus Patzak to leave the company by mutual agreement.
- Spinoff and public listing of Siemens Energy at end of September 2020 being pursued on schedule and without change.
Siemens is setting the course for establishing the next generation of management. To this end, the Supervisory Board of Siemens AG has made pivotal personnel decisions at an extraordinary meeting today. Siemens President and CEO Joe Kaeser (62) has informed the Supervisory Board of Siemens AG that he will not be pursuing an extension of his contract. He will be proposed as Chairman of the Supervisory Board of Siemens Energy. The Supervisory Board has appointed Roland Busch (55), who is currently Deputy CEO, to be President and CEO of Siemens AG. At the latest, this appointment is to be effective at the end of the next ordinary Annual Shareholders’ meeting, which is to take place on February 3, 2021. He is receiving a new contract for five years, effective April 1, 2020. In this connection, he will already be responsible for the planning and implementation of the budget for fiscal 2021 and will be assuming all relevant responsibilities within the Managing Board. In addition to his current duties, Roland Busch will – effective April 1, 2020 – also already be responsible for the overarching integration and management of the businesses of the future Siemens AG (Smart Infrastructure, Digital Industries and Mobility) within the Siemens Managing Board.
- Five industrial gas turbines for peak load and backup power plant
- Strengthening the power grid
For the third time in three months, Siemens has received an order from Belarus to supply SGT-800 industrial gas turbines. The new order covers five gas turbines, including associated auxiliary and electrical systems, for a peak load and backup power plant. The new plant will be built at the existing power plant location of the Berezovskaya combined heat and power plant in Beloozersk, Brest Region, in the south-western part of the country. The order was placed by Brest Republican Unitary Enterprise of Electricity Industry (Brestenergo). With an electrical capacity of 254 megawatts, the new plant will help further strengthen the power grid’s reliability and stability. Commissioning is scheduled for December 2021.