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Siemens Energy replaces the 11 billion euro government-backed financing facility

Siemens Energy announced on Thursday that it has replaced the 11 billion euro (12,6 billion dollars) government-backed financing facility put in place to stabilize the power equipment manufacturer in 2023. This is a crucial step in restoring its ability to pay out dividends.

After major quality problems at Siemens Energy's wind turbine business, the government was forced to guarantee billions of Euros worth of projects in late 2023.

Maria Ferraro, Chief Financial Officer at Siemens Energy, said that the federal government's "counter-guarantee" was crucial in 2023 to ensure our expected growth.

The suspension of dividends at Siemens Energy was one of the conditions for the facility.

Ferraro stated that "due to our performance over the last two years, and the positive environment in which we operate, we were able improve our margins and cash flow as well as strengthen our balance sheet."

This allowed us to replace the building before the end our fiscal year, and fulfill our commitment.

Last month, Siemens Energy's Chief Executive Christian Bruch said that the company would resume dividend payments in 2026 if the government facility was replaced. Reporting by Christoph Steitz Editing Madeleine Chambers

(source: Reuters)