Big news from Siemens Energy and Ørsted pushed the Uptime crew to record this special episode. Siemens Energy scored €15B financial backing from the government, banks, and industry to propel the company. Ørsted replaced their CFO and COO as the Danish energy leader looks to address the effects of Ocean Wind 1&2. Vestas and Nordex reported a positive Q3 with improved orders and financial statements.



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Allen Hall: Today's episode of the Uptime Wind Energy podcast is a special episode because we have seen so many quarter three results coming in and the changes at Ørsted. We thought we'd put together the special episode. So this is unique. There is a lot going on at Siemens and energy and Siemens and Gamesa, and there seems to be a rift between the two companies and Ørsted is shuffling the deck chairs a little bit.



The CFO and COO are out and they're bringing interim people into those slots. But we do feel like Ørsted is going to be heading in the right direction. It's just going to take a little bit of time to recover. So in this episode, we talk to all those things. We also talk about Vestas having a really great quarter and Nordex doing fairly well for themselves.



So there's some good news on the wind turbine OEM front. So stay tuned. There's a lot ahead.



Siemens Energy has provisionally secured about 15 billion euros for financing various projects. The German government has agreed to provide about seven and a half billion euros of that in guarantees of the total of 15 billion that's headed towards Siemens Energy. It's a weird breakdown how this happens, Phil.



So banks are providing about 12 billion euros. The government is backing the banks for about seven and a half billion of that. Siemens, the mothership, is providing about two billion Euros to the sale of a joint venture shares to Siemens Energy. Siemens Energy is also putting up a 3 billion first loss tranche.



So there's a, obviously a couple of players in the middle of this. There's gonna be some restrictions on Siemens Energy where the management does not get dividends or bonuses during this guarantee period. This is probably good news for Siemens Energy, but it doesn't really bode well going forward, right?



It just seems like there's gonna be more tough times ahead. 



Philip Totaro: Yeah, actually, it's probably better than you think, Allen, because this provides investors confidence. It brings some closure and some certainty to what was an open issue. The government, it's important to also note, the government in Germany is not actually putting up any actual cash at this point.



Joel Saxum: Just backing. 



Philip Totaro: Yeah, it's a backstop. So similar to what some financial institutions and other companies that were quote unquote too big to fail in the U. S. going back to the, the Lehman Brothers collapse and all that in 2008, 2009. You've got a situation where it's a move that provides investors confidence.



They were, Siemens Energy and Siemens Gamesa came out and said we don't actually need the cash per se anyway. We, what we need are it's a mechanism to be able to provide the customers who are demanding the backstop a way to, to achieve that. Because of Siemens Energy's financial results and reporting earlier this year, they had their credit rating lowered.



Which precluded the banks from wanting to be able to provide any kind of a backstop absent this go...