Uniper to pay back bailout cash as it swings to €6.3bn profit
The German government bailed out the gas giant during Europe’s energy crisis after Russia invaded Ukraine
15 February 2024 - 16:09
byChristoph Steitz and Tom Käckenhoff
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Uniper's headquarters in Duesseldorf, Germany, July 8 2022. Picture: WOLFGANG RATTAY/REUTERS
Frankfurt/Düsseldorf — Uniper will start to set aside money to pay back the billions it received from the German government as part of a bailout during Europe’s energy crisis, it said on Thursday after swinging to a €6.3bn operating profit.
The move is the strongest sign yet that Europe’s energy sector has turned a corner after severing most of its ties with Russia in the wake of the Ukraine war, with Uniper the most high-profile casualty of the ensuing crisis.
After Russia, Uniper’s main gas supplier, stopped deliveries in 2022, Berlin had to step in with a €13.5bn state bailout that gave the German government a 99.12% stake in the energy company.
Uniper on Thursday said that it would build a €2.3bn provision to start repaying that amount, benefiting from a one-off effect after the company’s gas wholesale price projections turned out to be too pessimistic.
More favourable price developments and successful hedging in coal- and gas-fired power generation, as well as at its trading business, helped Uniper swing to adjusted earnings before interest and tax (ebit) of €6.3bn last year, from a year-earlier loss of €10.9bn.
“Uniper closed 2023 with an exceptionally good result within our forecast,” CEO Michael Lewis said, adding the group was now in a very solid financial position and could start building provisions for future payment obligations.
Shares in the company were up 3.8% at 12.24pm GMT.
The news comes shortly after sources said Berlin was starting to think about selling as much as 30% of its holding in the energy firm as part of a share sale next year, in a sign of the company’s successful recovery.
Uniper, which is scheduled to release full annual results on February 28, said that the payment obligation will fall due at the beginning of 2025 and could still change depending on business development this year.
It said preliminary adjusted net income reached €4.4bn in 2023, compared with a €7.4bn loss in 2022. Uniper had forecast 2023 adjusted ebit of €6bn to €7bn euros and adjusted net profit of €4bn to €4bn.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Uniper to pay back bailout cash as it swings to €6.3bn profit
The German government bailed out the gas giant during Europe’s energy crisis after Russia invaded Ukraine
Frankfurt/Düsseldorf — Uniper will start to set aside money to pay back the billions it received from the German government as part of a bailout during Europe’s energy crisis, it said on Thursday after swinging to a €6.3bn operating profit.
The move is the strongest sign yet that Europe’s energy sector has turned a corner after severing most of its ties with Russia in the wake of the Ukraine war, with Uniper the most high-profile casualty of the ensuing crisis.
After Russia, Uniper’s main gas supplier, stopped deliveries in 2022, Berlin had to step in with a €13.5bn state bailout that gave the German government a 99.12% stake in the energy company.
Uniper on Thursday said that it would build a €2.3bn provision to start repaying that amount, benefiting from a one-off effect after the company’s gas wholesale price projections turned out to be too pessimistic.
More favourable price developments and successful hedging in coal- and gas-fired power generation, as well as at its trading business, helped Uniper swing to adjusted earnings before interest and tax (ebit) of €6.3bn last year, from a year-earlier loss of €10.9bn.
“Uniper closed 2023 with an exceptionally good result within our forecast,” CEO Michael Lewis said, adding the group was now in a very solid financial position and could start building provisions for future payment obligations.
Shares in the company were up 3.8% at 12.24pm GMT.
The news comes shortly after sources said Berlin was starting to think about selling as much as 30% of its holding in the energy firm as part of a share sale next year, in a sign of the company’s successful recovery.
Uniper, which is scheduled to release full annual results on February 28, said that the payment obligation will fall due at the beginning of 2025 and could still change depending on business development this year.
It said preliminary adjusted net income reached €4.4bn in 2023, compared with a €7.4bn loss in 2022. Uniper had forecast 2023 adjusted ebit of €6bn to €7bn euros and adjusted net profit of €4bn to €4bn.
Reuters
Scepticism grows over Renergen’s helium production
Expect a Middle East scramble for green African metals, says RMB
Heineken cuts value of SA business by R10bn
Project delays due to ‘community interference’ a serious concern, says DRDGold
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
Norway’s Equinor cuts shareholder payouts by $3bn
Scepticism grows over Renergen’s helium production
China expected to drive global LNG demand, says Shell
PetroSA appoints new acting CEO
Lower oil and gas prices squeeze Sasol’s profits
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.