May 25, 2023
Siemens Energy Orders ‘Overflowing’ as Green Shift Gains Speed
(Bloomberg) -- Siemens Energy AG is experiencing a surge in demand for green transition technologies as governments around the world step up efforts to pivot away from fossil fuels, according to Chief Financial Officer Maria Ferraro.
After years of supply-chain snarls stifling orders, “we’re now seeing a resurgence, if you’d like, with some real market momentum,” she said at a Bloomberg New Voices event in Frankfurt on Thursday. “We have an overflowing order book.”
Last year’s historic energy crisis forced central banks to respond to soaring prices with aggressive monetary tightening — complicating efforts to increase investments in renewables just at the moment when they became most urgently needed. Still, Siemens Energy sees the need to adopt cleaner technologies “overweighing” the cost of projects among its customers.
“When it comes to certain parts of my business, I’m booking orders now for 2028, 2029, 2030 — because we see that this is a long-term plan,” Ferraro said. “We need to think about the transition and it’s not something that causes a knee-jerk reaction on conditions today.”
Siemens Energy’s gas turbine and transmissions divisions have been profiting from the rising demand for cleaner energy. The company raised its sales outlook earlier this month citing high demand for power generation products.
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