- Nigeria refuse to play in Libya as Algeria, Cameroon qualify
- Strike-hit Boeing leaves experts puzzled by strategy
- Leweling rockets Germany past Dutch and into Nations League quarterfinals
- Kolo Muani double fires France to win in Belgium
- Italy sweep past Israel in Nations League amid high security
- UN peacekeepers to 'stay in all positions' in Lebanon
- NASA launches probe to study if life possible on icy Jupiter moon
- 'Unique' Ronaldo an example to everyone, says Martinez
- New lawsuits against Sean Combs allege sex assault, including of minor
- Italy begins migrant transfers to Albania with first group of 16
- Google signs nuclear power deal with startup Kairos
- Carsley open to foreign England manager amid Guardiola links
- Pogba hungry to have his football cake after doping ban
- India and Canada expel top envoys in Sikh separatist killing row
- Mbappe says victim of 'fake news' after 'rape' report in Sweden
- Lebanon says 21 killed in strike on northern village
- Netanyahu vows no mercy after deadly Hezbollah drone strike
- Russia could be able to attack NATO by 2030: German intelligence
- EVs seek to regain sales momentum at Paris Motor Show
- Clarke backs Scotland to bounce back from 'tough' run
- Harris, Trump target crucial Pennsylvania as US vote looms
- NASA probe Europa Clipper lifts off for Jupiter's icy moon
- Lebanese Red Cross says 18 killed in strike in north
- Mendy borrowed money from Man City team-mates for legal fees
- Palestinian officials say Israeli forces kill two in West Bank
- Football leagues, unions file EU complaint against FIFA in calendar dispute
- Nigeria boycott AFCON qualifier in Libya after 'inhumane treatment'
- India to recall top envoy to Canada: foreign ministry
- Hezbollah, Israeli troops in 'violent clashes' after drone strike
- China insists won't renounce 'use of force' to take Taiwan as drills end
- Painkiller sale plan to US gives France major headache
- Italy begins landmark migrant transfers to Albania
- Russia jails French researcher for three years
- 'Unsustainable' housing crisis bedevils Spain's socialist govt
- Stocks shrug off China disappointment but oil slides
- New Zealand 4-0 up in America's Cup but British show signs of life
- Russian prosecutor demands 3 years prison for French researcher
- 'Innocent' British nerve agent victim caught in global murder plot: inquiry
- Afghan Taliban vow to implement media ban on images of living things
- Russian prosecutor demands 3 years, 3 months jail for French researcher
- England ready for Pakistan's spin assault in second Test
- New Zealand's Ravindra excited for India Tests with father in crowd
- India's capital bans fireworks to curb air pollution
- Stocks diverge, oil retreats as China disappoints markets
- FIFA to open 'global dialogue' on transfer system after Diarra ruling
- Trio wins economics Nobel for work on wealth inequality
- Starmer vows to cut red tape as he urges foreign investors to 'back' UK
- Ex-Stasi officer jailed over 1974 Berlin border killing
- 'Not viable': Barcelona turns against surging tourism
- Hezbollah says targeted Israeli naval base after deadly drone strike
Siemens Energy gets state-backed 15-bn-euro rescue package
Siemens Energy will receive a 15-billion-euro ($16.3-billion), state-backed rescue package, Berlin said Tuesday, as the German group struggles to overcome a crisis in its wind power unit.
The company's Gamesa subsidiary has faced long-running technical problems with its onshore wind turbines, which have cost huge sums to fix and led to massive losses.
The unit's difficulties come amid broader troubles for the whole wind power sector in Europe, even as demand for clean energy grows. These range from higher prices for materials to strong competition from China.
Siemens Energy revealed last month that it was in talks with the German government over "guarantees" to help the company finance major new contracts, sending its shares crashing.
After weeks of talks, the state has now granted Siemens Energy 7.5 billion euros worth of guarantees, the economy ministry said.
They are part of a 15-billion-euro package agreed with other stakeholders, including private banks and the larger Siemens conglomerate, which is a major shareholder in Siemens Energy.
The ministry attributed its decision to Siemens Energy's importance in the "provision of energy systems" and as a major employer in "future-proof industries".
Despite overall healthy orders, problems at Gamesa meant Siemens Energy was having "difficulties in obtaining required guarantees in full on financial markets," the ministry said.
The company's shares closed nearly three percent higher in Frankfurt after the deal was announced.
- Revenue warning -
Media reports indicate Siemens Energy -- which was spun out of Siemens group in 2020 -- has abundant cash reserves but still needs guarantees for multi-year projects such as building power grids.
In a note last month, Berenberg Bank said the guarantees appeared to be needed to underwrite the growing backlog at the Gas and Power division, which is separate from the wind power unit.
At this division, which accounts for about 70 percent of group revenue, "demand is booming and profitability strongly growing," it said.
The long-running woes at Gamesa prompted Siemens Energy to take full control of the Spain-based subsidiary last year, but a hoped-for turnaround has yet to materialise.
In August, Siemens Energy reported a net loss of 2.9 billion euros in its fiscal third quarter, weighed down by a 1.6-billion euro hit to repair issues with wind turbines.
The company will release fourth quarter results on Wednesday.
Last month, the group revealed Gamesa was not currently concluding new contracts for some onshore projects and being selective with offshore projects, while warning revenues for the fiscal year 2024 are set to be lower than expected.
In September, European Commission president Ursula von der Leyen pledged more help for Europe's wind power sector, including the fast-tracking of permits.
On Tuesday, the German economy ministry said the European Investment Bank was "working on launching a guarantee programme for the wind energy sector".
O.Karlsson--AMWN