MUNICH: Siemens Energy proposed on Wednesday to pay a dividend of 0.10 euros per share on the back of a strong increase in cash flow, as it completed its first full business year since it spun off from former parent Siemens.
Siemens Energy, which supplies turbines and services to the power industry, also expects its adjusted core profit margin before special items to improve to 3-5% in 2022 from 2.3% this year.
"I'm pleased with our first full fiscal year performance as a stand-alone company and we delivered a solid fourth quarter with strong orders and cash flow," Chief Executive Christian Bruch said in a statement.
Free cash flow before tax rose 39% to 1.36 billion euros ($1.57 billion) in the year that ended in September, reflecting stricter cost management under which the group has become more rigorous in collecting down payments for placed orders.
The dividend proposal, below the 0.13 euros per share average analyst forecast according to Refinitiv, comes even though the company posted a full-year net loss of 560 million euros, burdened by wind turbine unit Siemens Gamesa.
In the fourth quarter, the group posted a loss before interest, tax and amortisation before special items of 46 million euros, reflecting an operating loss at Siemens Gamesa, which is trying to turn around its ailing onshore unit.
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