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Tag Archives: Siemens
EXCLUSIVE Gazprom says Nord Stream 1 resumption depends on Siemens Energy
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VLADIVOSTOK, Russia, Sept 6 (Reuters) – Russia’s biggest natural gas pipeline to Europe will not resume pumping until Siemens Energy (ENR1n.DE) repairs faulty equipment, Gazprom’s (GAZP.MM) Deputy Chief Executive Vitaly Markelov told Reuters on Tuesday.
Europe is facing its worst gas supply crisis ever, with energy prices soaring and German importers even discussing possible rationing in the European Union’s biggest economy after Russia reduced flows westwards.
Gazprom (GAZP.MM) on Friday said the Nord Stream 1 pipeline, Europe’s major supply route, would remain shut as a turbine at a compressor station had an engine oil leak, sending wholesale gas prices soaring. read more
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When asked when Nord Stream 1 would start pumping gas again, Markelov told Reuters on the sidelines of the Eastern Economic Forum in the Russian Pacific port of Vladivostok: “You should ask Siemens. They have to repair equipment first.”
Siemens Energy said it was not currently commissioned by Gazprom to do maintenance work on the turbine with the suspected engine oil leak, but was on standby.
The company, headquartered in Munich, Germany, said on Tuesday that it did not comprehend Gazprom’s presentation of the situation.
It said an engine oil leak at the last remaining turbine in operation at the Portovaya compressor station did not constitute a reason to keep the pipeline closed. read more
“We cannot comprehend this new representation based on the information provided to us over the weekend,” Siemens Energy said in a written statement.
“Our assessment is that the finding communicated to us does not represent a technical reason for stopping operation. Such leaks do not normally affect the operation of a turbine and can be sealed on site,” it added.
ENERGY WAR?
The Kremlin blames the energy crisis on sanctions imposed on Russia by the West over what President Vladimir Putin calls its “special military operation” in Ukraine. European leaders say Moscow is using energy to blackmail the EU.
Nord Stream 1, which runs under the Baltic Sea to Germany, is by far the biggest Russian gas pipeline to Europe, carrying up to 59.2 billion cubic metres of gas per year.
Once considered a symbol of the cooperation between one of the world’s biggest energy powers and the world’s fourth largest economy, Nord Stream has now become the subject of recriminations between Berlin and Moscow.
Germany, the biggest European purchaser of Russian energy, says Russia is no longer a reliable supplier. EU politicians say Putin is using his clout as the head of one of the world’s biggest energy powers to stoke discord in Europe over the conflict in Ukraine.
Germany dismisses Gazprom’s explanations about turbine issues as a pretext.
But the Kremlin says that the West triggered the energy crisis by imposing the most severe sanctions in modern history, a step Putin says is akin to a declaration of economic war.
The Kremlin also warned that Russia would retaliate over a G7 proposal to impose a price cap on Russian oil, a step that is unlikely to hurt Russia unless China and India were to follow suit.
Russian Energy Minister Nikolai Shulginov said on Tuesday in Vladivostok that Russia will respond to the price cap by shipping more oil to Asia. He said Russia and its partners were considering setting up an insurer to facilitate the oil trade. read more
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Reporting by Vladimir Soldatkin; Editing by Guy Faulconbridge and Jan Harvey
Our Standards: The Thomson Reuters Trust Principles.
Russia’s Gazprom says Siemens Energy ready to fix Nord Stream fault
Pipes at the landfall facilities of the ‘Nord Stream 1’ gas pipeline are pictured in Lubmin, Germany, March 8, 2022. REUTERS/Hannibal Hanschke/File Photo
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Sept 3 (Reuters) – Russia’s Gazprom (GAZP.MM) said on Saturday Siemens (ENR1n.DE) was ready to carry out repairs on the Nord Stream 1 pipeline but there was nowhere available to carry out the work, a suggestion Siemens denied and said it had not been asked to do the job.
Gazprom’s statement came a day after it said it would not resume gas supply to Germany via Nord Stream 1 until an oil leak it said it had detected in a turbine was fixed. It said the repairs could only be carried out at a specially fitted workshop. read more
The Kremlin has blamed Western sanctions for disrupting Nord Stream 1 and putting barriers in the way of routine maintenance work. Western officials have rejected this claim and Siemens Energy said sanctions do not prohibit maintenance.
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Before the latest round of maintenance, Gazprom had already cut flows to just 20% of the pipeline’s capacity.
“Siemens is taking part in repair work in accordance with the current contract, is detecting malfunctions … and is ready to fix the oil leaks. Only there is nowhere to do the repair,” Gazprom said in a statement on its Telegram channel on Saturday.
Siemens Energy said it had not been commissioned to carry out the work but was available, adding that the Gazprom reported leak did not normally affect the operation of a turbine and could be sealed on site.
“Irrespective of this, we have already pointed out several times that there are enough additional turbines available in the Portovaya compressor station for Nord Stream 1 to operate,” a spokesperson for the company said.
Flows through Nord Stream 1 were due to resume early on Saturday morning. But hours before it was set to start pumping gas, Gazprom published a photo on Friday of what it said was an oil leak on a piece of Nord Stream 1 equipment.
Siemens Energy, which supplies and maintains equipment at Nord Stream 1’s Portovaya compressor station said on Friday the leak did not constitute a technical reason to stop gas flows.
read more
Europe has accused Russia of using gas supplies as a weapon in what Moscow has called an “economic war” with the West over the fallout from Russia’s invasion of Ukraine.
Asked about the halt on Saturday, Economic Commissioner Paolo Gentiloni said the European Union expects Russia to respect energy contracts it has agreed but was prepared to meet the challenge if Moscow fails to do so. read more
German network regulator said the country’s gas supply was currently guaranteed but the situation was tense and further deterioration could not be ruled out.
“The defects alleged by the Russian side are not a technical reason for the halt of operations,” the Federal Network Agency said in its daily gas situation report.
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Reporting by Reuters
Editing by Jason Neely and Emelia Sithole-Matarise
Our Standards: The Thomson Reuters Trust Principles.
Siemens to leave Russia due to Ukraine war, take hefty charge
ZURICH, May 12 (Reuters) – Siemens (SIEGn.DE) will quit the Russian market due to the war in Ukraine, it said on Thursday, taking a 600 million euro ($630 million) hit to its business during the second quarter, with more costs to come.
The German industrial and technology group became the latest multinational to announce losses linked to its decision to leave Russia following the Feb. 24 invasion, which Moscow calls a “special military operation”.
Several companies, from brewers Anheuser-Busch InBev (ABI.BR) and Carlsberg to sportswear maker Adidas (ADSGn.DE), carmaker Renault and several banks have been counting the cost of suspending operations in or withdrawing from Russia. read more
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Siemens Chief Executive Roland Busch described the conflict as a “turning point in history.”
“We, as a company, have clearly and strongly condemned this war,” Busch told reporters.
“We’re all moved by the war as human beings. And financial figures must take a back seat in the face of the tragedy. Nevertheless, like many other companies, we’re feeling the impact on our business.”
During the second quarter Siemens incurred 600 million euros in impairment and other charges mostly recorded in its train-making mobility business subsequent to sanctions on Russia, Siemens said.
Busch said further impacts were to be expected, mainly from non-cash charges related to the winding-down of legal entities, revaluation of financial assets and restructuring costs.
“From today’s perspective, we foresee further potential risks for net income in the low- to mid-triple-digit million range, although we can’t define an exact timeframe,” he added.
Chief Executive Officer (CEO) of German industrial conglomerate Siemens, Roland Busch attends the virtual annual shareholder meeting in Munich, Germany, February 10, 2022. Sven Hoppe/Pool via REUTERS
Siemens shares dropped 5% in early trading as the company missed analysts’ expectations for second- quarter profit.
The Munich company employs 3,000 people in Russia, where it has been active for 170 years. It first went to Russia in 1851 to deliver devices for the telegraph line between Moscow and St Petersburg.
The country now contributes about 1% of Siemens’ annual revenue, with most of the present day business concerned with maintenance and service work on high-speed trains.
Its sites in Moscow and St Petersburg are now being ramped down, Busch said.
The costs weighed on Siemens’ second quarter earnings, with net income halved to 1.21 billion euros ($1.27 billion), missing analysts’ forecasts of 1.73 billion.
The company posted industrial profit of 1.78 billion euros, down 13% from a year earlier and also missing forecasts.
But demand stayed robust, with orders 22% higher on a comparable basis and revenue 7% higher.
As a result it confirmed its full-year outlook, with revenue comparable revenue growth of 6% to 8% for the full year, with a downturn in mobility expected to be compensated by faster growth in factory automation and digital buildings.
JP Morgan analyst Andreas Willi described the results as “mixed with strong orders, industry leading growth in automation and strong cash conversion.”
($1=0.9508 euros)
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Reporting by John Revill; Editing by Kim Coghill and Clarence Fernandez
Our Standards: The Thomson Reuters Trust Principles.
European stocks mixed in holiday-thinned trade; Siemens Gamesa shares rise
LONDON – European indexes were mixed on Thursday morning as holiday-thinned trading continued in the region.
The pan-European Euro Stoxx 600 was flat in early deals, with major bourses pointing in different directions. Tech was the only real gainer with a rise of nearly 0.5%.
Global investors are looking for a Santa Claus rally to close out a year of solid returns. The FTSE and the DAX are on track to see gains of 15% for this year, while the French CAC is close to a 30% gain.
Historically, many benchmarks gain during the Santa Claus rally — the final five trading days of the current year and the first two of the new year. The period began Monday.
Shares in Asia-Pacific were mostly higher in Thursday trade, while U.S. stock index futures were little changed during overnight trading after the S&P 500 and Dow Jones Industrial Average closed at new records.
Market players have spent recent weeks juggling concerns over new Covid restrictions and tighter central bank policy with early studies suggesting the omicron strain of the virus is milder than previous variants like delta. New studies in South Africa and the U.K. last week suggested omicron has a reduced risk of hospitalization and severe illness.
In individual stocks news, shares of Siemens Gamesa rose 0.6% in early deals after reaching a supply deal for wind turbines in Sweden.
Siemens chairman says supply chain chaos will last until next summer
Jim Hagemann Snabe is chairman of the supervisory board at Siemens and chairman of the board at Danish conglomerate A.P. Moller – Maersk.
Ralph Orlowski | Bloomberg | Getty Images
Supply chain chaos will likely persist through to the middle of next year, according to Jim Snabe, chairman of German conglomerate Siemens and Danish shipping firm Maersk.
Businesses and consumers around the world are currently facing lengthy delays on products and materials because of supply chain issues.
Speaking to CNBC’s Annette Weisbach on Tuesday, Snabe said: “Right now, we have congestion primarily in the West Coast of the U.S. where the ports are full of containers.”
While many countries have been closed to travelers at various times during the coronavirus pandemic, supply chains and transportation routes have remained largely open.
“The trade of goods has actually gone up, not down,” he explained. “There was a short period when the factories closed when the volumes went down but since the middle of 2020, the demand for physical products has gone up dramatically.”
The pandemic has resulted in more people working remotely and investing in their homes.
“The trade of goods has actually gone up, not down,” Snabe said, adding that he believes this is because people don’t spend as much on services anymore. “We don’t go to restaurants so much, we don’t go to the cinema, we don’t travel. People are home and they want to improve their homes.”
One of the main issues, Snabe said, is there aren’t enough truck drivers to pick up containers from the ports.
At the end of last week, Maersk had 84 vessels wait for an average of 18 days in front of ports, Snabe said. “That takes capacity out of the shipping industry because they are lying there idle,” he said.
“You have higher demand and lower capacity, not because we don’t have enough vessels, but because they are not sailing because of congestion,” Snabe added. “We have to balance that out. We think this will happen somewhere mid-next year, but maybe not before.”
Important items used in areas like healthcare can often be fast-tracked when necessary, Snabe said.
Semiconductors have been in particularly short supply during the pandemic, leading some car companies to pull semiconductor-reliant features from their vehicles and lengthy delays on products such as Sony’s PS5.
“We can make sure that that we can deliver,” Snabe said, adding that Siemens has a “preferred relationship” with its semiconductor suppliers.