Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. Spain
  4. Bolsas y Mercados Espanoles
  5. Siemens Gamesa Renewable Energy, S.A.
  6. News
  7. Summary
    SGRE   ES0143416115

SIEMENS GAMESA RENEWABLE ENERGY, S.A.

(SGRE)
  Report
Real-time Estimate Quote. Real-time Estimate Tradegate - 12/07 03:59:59 pm
22.1 EUR   +4.34%
08:19aSIEMENS GAMESA : Gets a Neutral rating from UBS
MD
12/03SIEMENS GAMESA : JP Morgan remains Neutral
MD
11/29SIEMENS GAMESA : Receives a Buy rating from Bernstein
MD
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Wind power risks becoming too cheap, says top turbine maker

11/24/2021 | 10:14am EST
FILE PHOTO: A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio

COPENHAGEN (Reuters) - The head of Siemens Gamesa warned on Wednesday that a decade-long race to bring down the cost of generating wind power could not continue, as it would reduce the financial muscle of turbine producers to continue investing in new technologies.

A boom in investments in green energy to address climate change has helped bring down the cost of wind power to a level where it can compete with fossil fuels like coal and natural gas.

"What we've clearly achieved is that wind power is now cheaper than anything else. But I believe we shouldn't make it too cheap," Chief Executive Andreas Nauen told Reuters.

In Europe, wind and solar currently are significantly cheaper than coal, natural gas and nuclear power, according to Bernstein research.

Demand for wind turbines is at a record high, driven by the green transition, but lower prices and increased competition have squeezed margins.

"We have probably driven it too far," Nauen said. The industry's ability to keep investing in new technologies and factories will be reduced if the drive to cut the cost wind power continues at the same rate, he added.

Wind turbine makers' operating margins are also being squeezed by rising costs stemming from the supply crunch and high prices for raw material such as steel.

Both Siemens Gamesa and its main rival Vestas have said they have been able to pass on part of the higher costs to customers, which is likely to be reflected in higher auction prices and power purchase agreements over time.

Earlier this month Vestas slashed its 2021 outlook for a second time this year, and now expects an operating profit margin of 4% versus 5-7% previously - a far cry from its long-term target of a 10% margin.

Siemens Gamesa has also pushed out the horizon at which it expects to hit its long-term margin target of 8-10% to 2024 or 2025, from 2023 previously.

Governments around the world are phasing out generous wind subsidies, opting for more competitive contract tenders, and favouring project developers that submit the lowest bids.

"We need to change auction systems in the future," Nauen said. He suggested criteria such as local job creation should be considered instead of focusing only on price.

(Reporting by Stine Jacobsen; Editing by Jan Harvey)


ę Reuters 2021
All news about SIEMENS GAMESA RENEWABLE ENERGY, S.A.
08:19aSIEMENS GAMESA : Gets a Neutral rating from UBS
MD
12/03SIEMENS GAMESA : JP Morgan remains Neutral
MD
11/29SIEMENS GAMESA : Receives a Buy rating from Bernstein
MD
11/25Germany's ambitious energy plan hinges on speed, industry warns
RE
11/25SIEMENS GAMESA : JP Morgan sticks Neutral
MD
11/25SIEMENS GAMESA RENEWABLE ENERGY S A : Second semester - CNMV report
PU
11/24Wind power risks becoming too cheap, says top turbine maker
RE
11/24SIEMENS GAMESA RENEWABLE ENERGY S A : Finland's energy transition to accelerate with count..
PU
11/23SIEMENS GAMESA : Goldman Sachs maintains a Buy rating
MD
11/22After years of drifting to the left, Chilean voters veer back right
RE
More news
Analyst Recommendations on SIEMENS GAMESA RENEWABLE ENERGY, S.A.
More recommendations
Financials
Sales 2022 10 123 M 11 416 M 11 416 M
Net income 2022 -268 M -303 M -303 M
Net Debt 2022 850 M 959 M 959 M
P/E ratio 2022 -60,3x
Yield 2022 0,07%
Capitalization 15 029 M 16 895 M 16 948 M
EV / Sales 2022 1,57x
EV / Sales 2023 1,44x
Nbr of Employees -
Free-Float 32,8%
Chart SIEMENS GAMESA RENEWABLE ENERGY, S.A.
Duration : Period :
Siemens Gamesa Renewable Energy, S.A. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends SIEMENS GAMESA RENEWABLE ENERGY, S.A.
Short TermMid-TermLong Term
TrendsNeutralBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 22
Last Close Price 22,10 €
Average target price 23,55 €
Spread / Average Target 6,56%
EPS Revisions
Managers and Directors
Andreas Nauen Chief Executive Officer & Director
Beatriz Puente Ferreras Chief Financial Officer
Miguel Angel Lˇpez Borrego Chairman
Alan Feeley Chief Information & Cyber Security Officer
Antonio de la Torre Chief Technology Officer