(News Bulletin 247) – Siemens announced Friday evening a reversal of impairment on its stake in its subsidiary Siemens Energy, which led to a sharp rise in the latter’s stock on the Frankfurt Stock Exchange.
In a press release, the German industrial group explained that it had noted this revaluation as part of its accounting work carried out as it approached the end of its second fiscal quarter, which ended on March 31.
Siemens indeed notes that the Siemens Energy share reached 20.2 euros last Friday, the last day of the quarter, i.e. a level much higher than the stock market price of 14 euros at the end of June 2022 which had led the group to record an impairment of his participation.
This reversal of impairment, recorded when it appears that the impairment of an asset is no longer justified, will result in a non-cash gain of 1.6 billion euros for the second quarter.
In the wake of this announcement, Siemens shares fell back slightly (-0.9%) Monday morning on the Frankfurt Stock Exchange, but Siemens Energy shares rose 5.5% following this favorable accounting adjustment.
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