Siemens Energy plans to expand its hydrogen-focused ventures
In a recent statement, CEO Christian Bruch of Siemens Energy has expressed hope that the company will return to profitability as soon as possible, as part of its overall business strategy. Bruch reaffirmed his intention to quickly improve the margins of Siemens Energy, as the company navigates the transition from conventional energies to renewables and hydrogen.
According to Bruch, the focus remains on cost reduction and profitability improvement for Siemens Energy. The company aims to drastically reduce costs and is planning to significantly expand its business in hydrogen. Hydrogen technology could become a cornerstone of Siemens Energy's new business, with Bruch stating that it could become a billion-dollar business for the company.
Bruch also noted that building an electrolyzer requires fewer capacities than building a gas turbine, indicating a potential shift in the company's production priorities. However, the cost of the transition from conventional energies to renewables and hydrogen for Siemens Energy was not specified.
CEO Bruch could not rule out further job cuts due to the transition, acknowledging that the shift towards renewables and hydrogen could potentially result in job losses. Despite this, Bruch remains optimistic about Siemens Energy's future, stating that he is hopeful for the company's return to profitability.
Analysts forecast that Siemens Energy will return to profitability in 2025, with a net profit of approximately 1.2 billion euros for that year, and earnings per share estimated at 1.53 euros in 2025. However, no specific timeframe was given for the company's return to profitability.
In order for hydrogen to make a breakthrough, Bruch believes that cheaper electricity prices, higher CO2 prices, and a consistent expansion of renewable capacities are necessary. These conditions could pave the way for hydrogen to play a significant role in Siemens Energy's future business.
As Siemens Energy embarks on this transition, the goal of profitability and cost reduction remains a current priority for the company. Bruch has reaffirmed his commitment to improving the company's margins and increasing profitability, as Siemens Energy moves forward in the rapidly changing energy landscape.
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