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Shares in Siemens Energy plunged almost 25 per cent after the group said it was in talks with banks and the German government over strengthening its balance sheet.
The Dax-listed group’s shares fell €2.59 to €8 in early trading on Thursday as it confirmed reports in the German press.
In an announcement to the stock exchange, the company said it was “evaluating various measures to strengthen the balance sheet of Siemens Energy and is in preliminary talks with different stakeholders, including banking partners and the German government, to ensure access to an increasing volume of guarantees necessary to facilitate the anticipated strong growth”.
Siemens Energy added that “strong growth in order intake, particularly in the former gas and power business areas, leads to a rising need of guarantees for long-term projects”.
It comes after the company warned investors in August it expected to make a loss of €4.5bn this year, driven by problems at its wind turbine maker Siemens Gamesa, which has been suffering from technical challenges and inflationary pressures.
Its shares have fallen almost 70 per cent since June when it revealed mounting challenges in the wind business, in what chief executive Christian Bruch described as a “bitter” moment.
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