Federal Guarantee Worth Billion Dollars Retrieved by Siemens Energy
Siemens Energy Ditches Federals Guarantees, Bodes Well for Shareholders
Munich's Siemens Energy has waved goodbye to its federals guarantees, trading a 11 billion euro guarantee agreed upon with the feds for a new 9 billion euro agreement from 23 banks, sans state backing. The energy juggernaut needed federal support back in 2023 when its wind sector faced a crisis and was swamped with new orders. Normally financed through guarantees issued by banks for a fee, securing these were tough for Siemens then. However, federal support, free of cost, sorted things out. They paid around 100 million euros annually for this, as CEO Christian Bruch revealed to the "Handelsblatt".
Today, Siemens Energy no longer needs that security. Things have been looking up for the company recently, and it's on the brink of notching the second consecutive annual profit.
Bye-Bye Guarantees, Hello Dividends?
In CFO Maria Ferraro's words, "Federal guarantees were crucial in 2023, bridging the way during a turbulent period. Thanks to our impressive performance over the last two years, an attractive market environment, and improved financial standing, we could scrap the federal guarantee early, as planned."
This development means good news for shareholders. Although the stock price remained unchanged following the announcement, Siemens Energy's decision ultimately lifts a ban on dividend payments. However, this will only take effect from the next fiscal year, starting October 1. If business continues to chug along smoothly, shareholders could be in line for their first dividend payout in 2027.
A Glimpse into Siemens Energy's Recent Dividend History
Here's a quick rundown on Siemens Energy's recent dividend payments:
- Past Dividends: The company hasn't issued any dividends in the past year. The last payment was a small €0.10 ($0.11) per share in February 2022, and the next ex-dividend date remains undisclosed.
For detailed information on Siemens Energy's dividend timeline following the scraping of federal guarantees, it's best to tune into more specific financial reports or announcements from Siemens Energy itself.
With the elimination of federal guarantees, Siemens Energy may now consider rewarding shareholders with dividends, a prospect hinted by CFO Maria Ferraro. However, any dividend payments will be effective from the next fiscal year, commencing October 1. If business growth continues, this could potentially lead to the payment of dividends to shareholders for the first time in 2027.
