CDMA is not going to take the world! Siemens double ts revenue from services to oil and gas firms as it dumps mobiles.
Siemens to double revenue from oil companies as it dumps mobiles
Posted online: Friday, July 08, 2005 at 0138 hours IST
KUALA LUMPUR, JULY 7: German engineering giant Siemens, aims to double its revenue from services to oil and gas firms to around $2 billion in 2005, as it shifts out of its loss-making mobile phone business, a senior executive said. Siemens said last month it was selling its mobile business to Taiwan’s BenQ Corp.
“As you know, we had some problems with the mobile phones business,” Klaus Voges, group president for power generation at Siemens, told Reuters on Thursday. “Communications will remain a key part of our business, but we’re definitely paying more attention to oil and gas now.”
The Southeast Asian hub of Siemens’ oil and gas business. Sales of technological solutions for up-stream, mid-stream and down-stream development of oil and gas, including turbines for oil rigs, contributed around 1.2 billion euros ($1 billion) of revenue for the year to last September.
“It’s already a growing business and our target is to double this number,” Mr Voges said. Power generation accounted for around 8 billion euros of Siemens’ total turnover of 75.17 billion euros in 2004. The Kuala Lumpur office for the oil and gas business is Siemens’ third after centres in Houston and London, and Mr Voges said other centres would open next in Dubai, Beijing and Moscow. He said Siemens’ involvement in the industry had been strengthened by strategic acquisitions in Demag Delaval, a manufacturer of gas compressors, Ruston and ABB Fingspong, a maker of gas turbines, and the steam turbine division of Alstom Industrial.
“As a result, we have moved further up the value chain. Today we offer gas turbines, steam turbines, electric motors, compressors, pump sets, generators, automation and control equipment. These products will be integrated into solutions for gas compression, the pumping of water and crude, oil field power generation and distribution, together with associated automation and controls,” he added.
— Reuters |
