February 07, 2024 [Reuters]- Siemens Energy (ENR1n.DE), opens new tab swung to a 1.58 billion euro ($1.7 billion) net profit in the first quarter, citing a one-off gain related to the sale of an Indian affiliate to former parent Siemens AG (SIEGn.DE), opens new tab.

“The solid first quarter is encouraging, in part also due to project shifts, which are normal in plant engineering, especially with the market dynamics we are currently seeing,” CEO Christian Bruch said.

“That is why our focus remains on solving the quality problems in our onshore wind business and making the most of the growth potential for the rest of the company.”

Siemens Energy, which unveiled a new record for its order backlog at 118 billion euros, is recovering from equipment quality issues at its newer onshore turbines, a crisis that has forced the government to backstop vital project guarantees.

As part of that agreement, Siemens Energy agreed to sell a 18% stake in India’s Siemens Ltd (SIEM.NS), opens new tab to Siemens AG for 2.1 billion euros.

Shares in Siemens Energy, which had published preliminary first-quarter results last month, have gained 19% year-to-date, outperforming a 2% gain in Germany’s blue-chip index (.GDAXI), opens new tab it belongs to.

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