By Giulia Petroni

Siemens Energy laid out its post-spinoff strategy on Tuesday, saying it aims to increase profitability and focus on portfolio adjustments while shifting toward sustainability.

The energy company, which is due to debut on the stock market this month, said management aims to achieve an adjusted earnings before interest, taxes and amortization margin before special items of between 6.5% and 8.5% for fiscal 2023.

Siemens Energy's owner Siemens AG is spinning off 55% of the energy business, which includes its gas and power operations as well as its 67% stake in wind-turbine maker Siemens Gamesa Renewable Energy SA. Siemens will retain a 35.1% stake in Siemens Energy.

In the first phase of its strategy, the company said it will focus on the gas and power segment, in order to have "a leaner cost structure, optimized logistics, centralized purchasing and the reduction of non-conformance costs."

Project selection will also be one of the main focuses, as the company is currently evaluating initiatives that target more than 300 million euros ($357.7 million) of annual gross global cost savings. These add up to the already-announced EUR1 billion saving target until fiscal 2023, compared to fiscal 2018 levels.

In fiscal 2019, Siemens Energy's revenue amounted to EUR28.8 billion.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

September 01, 2020 06:49 ET (10:49 GMT)

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