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Clean Energy Suffers New Stock Crash

Shares in Siemens Energy crashed to record lows after the energy-technology giant said it was talking to the German government and banks about guarantees to back long-term projects.

The stock fell as much as 39% in Frankfurt, hitting the lowest levels since it was spun off as a public company in 2020.

Tweet on Siemens green stock fluctuation

Factset chart on Siemens

Shares in former owner Siemens, which remains a large shareholder, fell nearly 5%. Both stocks are included in Germany’s benchmark DAX index.

Siemens Energy also said it expects its wind business, Siemens Gamesa, to record lower revenues and higher losses than market expectations through the next fiscal year.

The company issued a similar warning in June when it withdrew its profit outlook for 2023 because the wind unit’s turbine components were failing more often.

Clean-energy companies, including those focused on both wind and solar, have come under pressure in recent months from rising interest rates. The challenges created by higher borrowing costs build on years of supply-chain disruptions from the Covid-19 pandemic and higher costs.

Siemens Energy makes equipment for both clean energy and traditional power generation.

Solar power stocks tumbled last week after SolarEdge Technologies said it had seen a slowdown in installations.

Source: Bloomberg/Siemens
Image: Solar Energy