Siemens Energy blames Russia crisis for huge loss

Siemens Energy on Monday blamed a 200 million euro ($204 million) charge related to the wind-down of its Russian business for a wider net loss in 2022, but said it was still prepared to maintain turbines for the Nord Stream 1 Russian gas pipeline.

The supplier of equipment to the power sector said that its Russian business activities could be sold or wound down and the company was in touch with public authorities to work out the details.

"Of course, implementing this is not trivial in the current environment," Siemens Energy Chief Executive Christian Bruch said.

Shares in the company were down 2.8 per cent by 0855 GMT, having pared earlier losses, but were still underperforming the broader sector.

Siemens Energy said its 2022 net loss would exceed last year's 560 million euro loss by the 200 million euro charge, which is reported as a special item. It previously expected its 2022 net loss to be similar to last year's.

The group, which was spun off from Siemens, said in March it would stop all new business in Russia following Moscow's invasion of Ukraine that began on February 24.

Sales in Russia accounted for a low single-digit percentage share of Siemens Energy's total sales last year of 28.48 billion euros, it has said.