Monday saw a significant boost for the struggling energy technology group, Siemens Energy, on the stock market. This surge was prompted by a report of a breakthrough in discussions regarding state aid. The share price soared up to seven percent as a result.
According to previous reports, the crux of the negotiations over state aid had been resolved. Siemens Energy is reportedly set to secure guarantees for major projects totalling 15 billion euros. There's also been progress made in resolving the involvement of the 25% major shareholder, Siemens, which the federal government had insisted upon. The official announcement is due on Wednesday, when Siemens Energy will present its financial report. The companies remained tight-lipped regarding the details at this stage.
Recent troubles at the wind power subsidiary, Gamesa, had been weighing heavily on Siemens Energy. On Monday, the share price briefly touched the 10-euro mark for the first time since the end of October. However, Siemens shares failed to hold onto these gains and later fell 0.11%. They currently stand at 130.94 euros.
The German Federal Government's decision to provide guarantees worth 15 billion euros for Siemens Energy's key projects has contributed to this positive market performance. The forthcoming announcement on Wednesday is expected to provide further clarity on the details of the state aid agreement.
In other related news:
- The Danish government has agreed to offer state aid to assist in the construction of a hydrogen pipeline from Esbjerg to the German border by 2030. This includes a billion-euro guarantee for the construction of the pipeline and a 7.4 billion Danish Kroner framework for Energinet to be repaid, with additional operating subsidies of 8.3 billion DKK over thirty years.
- Siemens Energy is actively involved in the German wind power sector, benefiting from over seven billion euros in state support payments to wind turbine producer Siemens Energy in 2023 as part of broader efforts to bolster the renewable energy sector in Germany.
- BlackRock, a prominent global investment management corporation, has expanded its stake in Siemens Energy to 5.40% of the total voting rights. This strategic move could impact Siemens Energy's shareholder dynamics and market perception.
- Siemens Mobility, alongside Leonhard Weiss, has secured a significant share of Deutsche Bahn’s contract for the modernization of Germany’s rail network, worth €2.8 billion. This forms part of a larger €6.3 billion agreement focused on advanced digital signaling technology.
Although there's no direct mention of a state aid agreement between the German Federal Government and Siemens Energy in the available sources, these insights provide a broader context to the recent developments in the energy technology sector.
