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Siemens Energy sees ‘need for action’ in $4.3 bln turbine unit takeover plan

Siemens Energy sees ‘need for action’ in $4.3 bln turbine unit takeover plan

MADRID, May 23 (Reuters) – Siemens Energy (ENR1n.DE) does not yet see signs of a recovery at wind turbine maker Siemens Gamesa (SGREN.MC), its chief executive said on Monday after launching a 4.05 billion euro ($4.29 billion) bid for minority holdings in the unit.Siemens Energy announced the bid on Saturday after pressure from shareholders to raise its stake in Siemens Gamesa from the 67% it inherited after a spin off from Siemens (SIEGn.DE). Siemens Gamesa said it would review the offer. read more Siemens Gamesa shares rose more than 6% at the Madrid market open to trade at about 17.7 euros by 0705 GMT, just below the 18.05 euro per share offer price. Siemens Energy shares rose 2.7% in Frankfurt.Register now for FREE unlimited access to Reuters.comRegisterSiemens Gamesa, whose shares had fallen 20% since the start of the year until the offer was made, had issued three profit warnings in less than a year, dogged by product delays and operational problems.”There are not yet clear signs of a near-term recovery in the current setup,” Siemens Energy Chief Executive Christian Bruch said, adding that Siemens Gamesa’s financial performance was “really creating the need for action.”The bid price represented a premium of 27.7% over the Spanish-listed stock’s last unaffected closing price on May 17, and a 7.8% premium to Friday’s closing price.Asked about the onshore turbine business which has caused particular headaches, Bruch told analysts on a conference call: “There is no reason why you cannot be successful in onshore business if you fix your operational issues.”European turbine makers have racked up losses in a fiercely competitive market as metals and logistics prices surged due to COVID-19, import duties and Russia’s invasion of Ukraine. read more “I don’t believe that the supply chain environment will get easier,” Bruch said, increasing the need to “push for operational excellence everywhere as fast as possible”.He said pooling suppliers would “leverage the double-digit billion procurement volume we have as a total group as best we can.”Working to produce hydrogen from wind power, a technology seen as a promising way to reduce planet-warming carbon emissions from industry, could also be more effective under the new setup, he said.($1 = 0.9431 euros)Register now for FREE unlimited access to Reuters.comRegisterReporting by Isla Binnie; Editing by Christian Schmollinger and Edmund BlairOur Standards: The Thomson Reuters Trust Principles. .

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Siemens Energy launches $4.3 billion bid for remaining Siemens Gamesa stake

Siemens Energy launches $4.3 billion bid for remaining Siemens Gamesa stake

A model of a wind turbine with the Siemens Gamesa logo is displayed outside the annual general shareholders meeting in Zamudio, Spain, June 20, 2017. REUTERS/Vincent WestRegister now for FREE unlimited access to Reuters.comRegister

  • Siemens Energy bids 18.05 euros/share for 33% stake
  • Bid comes after operational problems at Siemens Gamesa
  • Deal could yield cost synergies of up to 300 mln eur

FRANKFURT, May 21 (Reuters) – Siemens Energy (ENR1n.DE) on Saturday launched a 4.05 billion euro ($4.28 billion) bid for the remaining shares in struggling wind turbine unit Siemens Gamesa (SGREN.MC), hoping to remove a complex ownership structure that has weighed on its shares.Siemens Energy said the 18.05 euros per share bid constitutes a premium of 27.7% over the last unaffected closing share price of Spanish-listed Siemens Gamesa of 14.13 euros on May 17. It is a 7.8% premium to Friday’s closing price.Siemens Energy has faced mounting shareholder pressure to seek control of Siemens Gamesa (SGRE), in which it owns 67%, a stake it inherited as part of a spin-off from former parent Siemens (SIEGn.DE).Register now for FREE unlimited access to Reuters.comRegisterThat stake has given Siemens Energy little influence to deal with product delays and operational problems at Siemens Gamesa. The group has issued three profit warnings in less than a year.”It is critical that the deteriorating situation at SGRE is being stopped as soon as possible, and the value-creating repositioning starts quickly,” said Joe Kaeser, Siemens Energy’s supervisory board chairman.This year, sources told Reuters that Siemens Energy was exploring options to acquire the remaining stake in Siemens Gamesa and a deal could materialise by summer. read more Siemens Energy said it plans to finance up to 2.5 billion euros of the transaction with equity or equity-like instruments, adding a first step could be a capital increase without subscription rights.The remainder would be financed with debt as well as cash on hand, Siemens Energy said, adding it aimed to delist Siemens Gamesa. Spanish stock market regulations allow that once ownership of 75% is reached.Full integration of Siemens Gamesa will simplify Siemens Energy’s structure and provide a more coherent business model that caters to legacy energy assets like coal, transition technologies such as gas, and renewable power sources.”This transaction comes at a time of major changes affecting global energy,” Siemens Energy Chief Executive Christian Bruch said. “Our conviction is that the current geopolitical developments will not lead to a setback to the energy transition.”Siemens Energy said the deal would lead to cost synergies of up to 300 million euros annually within three years of the full integration, mainly due to more favourable supply chain management, combined administration and joint R&D.The deal should close in the second half and is expected to achieve revenue synergies of a mid triple-digit million amount by 2030, the group said.($1 = 0.9470 euros)Register now for FREE unlimited access to Reuters.comRegisterReporting by Christoph Steitz and Ludwig Burger; Editing by Nick Zieminski, Daniel Wallis and David GregorioOur Standards: The Thomson Reuters Trust Principles. .

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Asia Fuel Oil VLSFO cash premiums gain, HSFO cash premiums hit multi-month highs

Asia Fuel Oil VLSFO cash premiums gain, HSFO cash premiums hit multi-month highs

SINGAPORE, March 8 (Reuters) – Asia’s cash premiums for 0.5% very low-sulphur fuel oil (VLSFO) rose for a second consecutive session on Tuesday, while the prompt-month spread for the marine fuel grade remained in steep backwardation.Cash differentials for Asia’s 0.5% VLSFO , which have surged about 44% in the last month, were at a premium of $19.80 a tonne to Singapore quotes, compared with $19.67 per tonne a day earlier.The March/April VLSFO time spread traded at $32 a tonne on Tuesday, compared with $33.75 a tonne on Monday.Register now for FREE unlimited access to Reuters.comRegisterThe front-month VLSFO crack rose to $29.83 per barrel against Dubai crude during Asian trading hours, up from $29.61 per barrel in the previous session.Meanwhile, the 380-cst HSFO barge crack for April traded at a discount of $16.79 barrel to Brent on Tuesday, while cash premiums for 380-cst high sulphur fuel oil (HSFO) rose to a more than four-month high of $5.55 per tonne to Singapore quotes.Backed by firmer deals in the physical market, the cash differentials for 180-cst HSFO surged to a premium of $8.59 a tonne to Singapore quotes, a level not seen since October last year. They were at a premium of $6.39 per tonne a day earlier.ASIA REFINERS TO CRANK UP RUNS- Some Asian refineries plan to increase output in May to cash in on high prices for gasoil exports to Europe, even as the steepest crude prices in 14 years threaten profit margins, numerous trade sources said. read more – European diesel supplies have shrunk following the disruption of western sanctions imposed on Russia in response to its invasion of Ukraine, which it describes as a “special operation”.- Strong European demand has boosted Asian refiners’ profits for producing gasoil for exports to the West. However, the refiners are also paying record premiums for Middle East crude supplies after the disruption of sanctions left buyers with limited options.WINDOW TRADES- One 380-cst high-sulphur fuel oil (HSFO) deal, two 180-cst HSFO trades- One VLSFO trade was reportedOTHER NEWS- The United States is willing to move ahead with a ban on Russian oil imports without the participation of allies in Europe, two people familiar with the matter told Reuters, in light of Russia’s invasion of Ukraine. read more – Oil prices rose on Tuesday, with Brent surging past $126 a barrel, as fears of formal sanctions against Russian oil and fuel exports spurred concerns about supply availability.ASSESSMENTSRegister now for FREE unlimited access to Reuters.comRegisterReporting by Koustav Samanta; Editing by Shinjini GanguliOur Standards: The Thomson Reuters Trust Principles. .