Aquila European Renewables (AERI ) has reassured investors that there have been no faults with its Siemens Gamesa wind turbines after parent company Siemens Energy last month withdrew profit guidance in response to increased failure rates.

Shares in Munich-based Siemens Energy plunged by more than a third after the company warned on 23 June that the problems in its turbines would require in excess of €1bn (£860m) to rectify. 

With shares in the €433m (£371m) portfolio slipping after surviving a continuation vote last month, AERI announced on Friday that there were no issues affecting the Siemens turbines at its 32-megawatt Svindbaek wind farm in central Denmark, which represents 9% of net asset value.

AERI fund manager Aquila Capital clarified that the technical problems at Siemens Gamesa related to a turbine series not used at the wind farm.

‘In accordance with the existing Turbine Supply Agreement at Svindbaek, the manufacturer warranty period ended in 2022,’ the statement said. ‘During the inspection at the end of the warranty period in 2022, no serial defects were identified.’

Other renewables funds using Siemens Gamesa turbines include Ecofin US Renewables Infrastructure (RNEW ). It employs the equipment at the Whirlwind wind farm in Texas damaged in a tornado last month leading to a halving of its dividend. Ecofin said it was unaware of any issues with the turbines at present.

AERI performance since launch 

Source: Morningstar

AERI’s 464 MW portfolio of solar, wind and hydropower projects in six European countries is fully operational and is targeting dividends of 5.51 cents a share this year that it believes will be 1.8 times covered by earnings. The sterling AERS shares trade on a 17% discount to NAV and offer a 6% dividend yield after an 8% fall in the past month, a level that its corporate broker Numis said was good value.