Siemens Energy shares fell 32% after the company requested support from the German government

Siemens Energy shares fell more than 32% on Thursday after the company requested guarantees from the German government.

“Strong growth in orders, especially in the former gas and power business areas, is leading to an increased need for guarantees for long-term projects,” the company said in a statement.

“Given this requirement, the Executive Board is evaluating various measures to strengthen Siemens Energy’s balance sheet and is holding preliminary talks with various stakeholders, including banking partners and the German government, to ensure access to the increased volume of guarantees necessary to facilitate strong growth,” he added.

The wind energy giant made headlines earlier this year when it scrapped its earnings forecasts and warned that costly breakdowns at Siemens Gamesa’s wind turbine subsidiary could last for years.

“Siemens Gamesa Wind Energy solves quality issues and addresses the challenges of offshore energy densification as announced in the Q3 FY2023 communications,” the company said.

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