Cedigaz News Reports


Bailed-out Uniper sees 2 bln eur in profits from gas supply hedges.

Uniper expects more than 2 billion euros ($2.2 billion) in profits after hedging its gas supply commitments through 2024, adding there would be no more additional losses related to the replacement of Russian volumes.

The news marks a major turning point for Uniper, which was nationalised last year by Berlin after key supplier Russia suspended gas deliveries and nearly led to the German utility's collapse.

Shares in the company, in which Berlin owns 99%, were up 3.7% following the announcement, which could pave the way for efforts to pare back the government's ownership, one of the conditions under EU state aid regulation.

Uniper, scheduled to hold its annual general meeting on Wednesday, said it would coordinate with the government about how to use the profits, confirming its full-year outlook that foresees positive operating earnings and net profit in 2023.

"Uniper has solid ground under its feet again. Despite this very positive development for Uniper, however, we remain cautious," Chief Financial Officer Jutta Doenges said in a statement.

Last year, Uniper was forced to buy gas on the spot market at sky-high prices to meet its contracts after its top supplier Gazprom first cut and later suspended deliveries via the Nord Stream pipeline.

Uniper said it nearly hedged all of the associated gas supply obligations to municipal and industrial customers through 2024 via forward contracts, adding no further equity increases by the government were necessary.

Uniper, Germany's largest gas trader has so far received around 20 billion euros in equity and loans from the German government, which last year rushed to save the company to avoid a supply crisis in Europe's top economy. (May 23, 2023)