Uniper

Uniper is a German energy company.

Performance indicators

2022

Losses of 19 billion euros due to short supplies of Russian gas

At the end of 2022, Uniper received a net loss of 19.12 billion euros, which is almost five times more than losses a year ago of 4.11 billion euros. The German energy concern published its reports in mid-February 2022.

Uniper's revenue for 2022 reached €274.12 billion, up substantially from the previous year's sales of €162.97 billion. The indicator for Russia is not given.

German concern Uniper suffered losses of 19 billion euros

As explained in Uniper, these losses for 2022 include about €13.2 billion in additional costs for the purchase of replacement gas and about €5.9 billion in future losses, which are expected due to future procurement costs to replace short-supplied Russian gas.

As Uniper CFO Tiina Tuomela noted, the dynamics of gas prices have a very significant impact on Uniper's gas replacement costs.

As is well known, Uniper must fill the missing supplies from Russia by purchasing gas elsewhere. A significant decrease in gas prices at the end of 2022 reduced the expected losses due to gas purchases for replacement from about €30 billion to about €5.9 billion compared to the first nine months of the financial year. We should be aware that in future quarters, Uniper's earnings will largely depend on the amount of gas replacement costs. These costs, in turn, largely depend on the price of gas, she said.

Uniper at the end of 2022 classified assets in the Russian Federation as discontinued activities due to the loss of the ability to make decisions and lead Unipro PJSC, according to the report of the German energy holding. By the end of 2022, Unipro owned 5 thermal power plants in the Russian Federation: Surgut GRES-2, Berezovskaya GRES, Shaturskaya GRES, Smolensk GRES and Yayvinskaya GRES

Uniper Annual Report 2022

Allocation of €34.5 billion from the German budget to save the company

The European Commission in December 2022 approved the allocation of €34.5 billion from the German budget for the recapitalization of the Uniper energy concern.

Net loss of 40 billion euros for 9 months

Uniper SE reported a net loss of about €40 billion ($39.3 billion) in the first nine months of this year amid a decline in Russian gas supplies.

The German energy giant, which is due to receive a €30 billion aid package, which will lead to its nationalization by the end of the year, has become one of the companies most affected by the reduction in gas supplies. Russia

Uniper is considered important to Germany's energy system and its fall could have a domino effect on the entire sector.

Loss of 12 billion euros for the first half of the year due to a reduction in Russian gas supplies

Uniper SE's net loss for the first half of 2022 amounted to more than 12 billion euros, which became one of the largest in the history of German companies and exposed the unprecedented crisis that engulfed the energy markets Europe. Russia This is stated in the statements that the German the energy company published in mid-August 2022.

To meet its contractual obligations, Uniper was forced to purchase gas from the spot market at high prices, according to the statement. More than half of the loss, 6.5 billion euros, is due to the future consequences of a reduction in gas supplies.

Also, 2.7 billion euros fell on the impairment of Uniper's share in the Nord Stream-2 project and assets in the Russian electric power industry. By mid-August 2022, the concern, with the help of lawyers, analyzes the possibility of returning part or all of the loan provided to it earlier for the implementation of the project.

Profit in the global commodities segment decreased significantly compared to the previous year

For several months, Uniper played a decisive role in stabilizing gas supplies to Germany - at the cost of billions of dollars in losses as a result of a sharp reduction in gas supplies from Russia, says the head of the company Klaus-Dieter Maubach. - German federal government] acknowledged this and took decisive action. On July 22, 2022, the federal government, Uniper and Fortum agreed on a package of measures to stabilize Uniper. This would prevent a chain reaction that would cause far more damage. Our main priority now is the early implementation of the stabilization package. "

In July 2022, it became known that Uniper began to take gas from its own storage facilities for the needs of consumers amid a reduction in supplies from Russia. In this regard, the company sent a letter to its customers informing them of a possible price increase.

Uniper's net debt rose to €2.06 billion by the end of June 2022 from €324 million a year earlier.^[1]

History

2024: Plan to terminate the contract for the supply of gas from Russia

In June 2024, Uniper announced that it had decided to terminate its long-term contracts for the supply of Russian gas. The company decided to break the contract after a positive decision in the arbitration proceedings. In addition, the court unexpectedly awarded Uniper more than €13 billion in compensation for non-delivery of gas.

The contract was supposed to be valid for another ten years (until 2035).

2023: US LNG deal to end 2030s

Natural demand gas To Europe in will not decline until at least the end of the next decade, according to Uniper SE. As# xj4y7vzkg stated in an interview London in September 2023, Peter Abdo, the company's chief commercial officer for LNG and global production, the German the company recently struck a deal to supply American LNG to the continent "until the very end of the 2030s."

2022

Germany considers nationalizing Uniper as energy crisis worsens

In September 2022, it became known that the German government could increase its stake in Uniper SE above 50% and is ready to take the historic step of completely nationalizing the country's largest gas importer to prevent the collapse of the energy system.

Losses of the gas giant in the first half of the year amounted to 12 billion euros.

German government acquires 30% of shares to save the company

On July 22, 2022, German Chancellor Olaf Scholz confirmed that the German government is acquiring a 30% stake in the Uniper energy concern to save the company.

Earlier, Finnish energy giant Fortum, its German subsidiary Uniper and the German government agreed on a comprehensive package of measures to stabilize Uniper's financial condition.

As part of the package, the German government will acquire about 157 million ordinary shares of the new Uniper issue at a price of 1.7 euros per paper, that is, for a total amount of 267 million euros.

Fortum parent company refuses to fund Uniper

On July 19, 2022, it became known that the Finnish energy concern Fortum would no longer finance its German subsidiary Uniper, said Cabinet Minister for EU Affairs and State Property Finland Tyutti Tuppurainen. The controlling stake in the energy company belongs to the state.

Now Uniper is experiencing problems due to a shortage of natural gas and rising prices. A couple of weeks ago, the company, being the largest importer of Russian gas in the country, asked the German government for help.

Request to the German government to save the company

In July 2022, gas giant Uniper SE asked the German government for a bailout, the first major corporate casualty of Moscow's pressure on European energy flows.

Uniper, heavily dependent on Russian gas, has proposed that the government accept an "appropriate" equity stake. She also asked for additional debt financing by increasing the government credit line.

Uniper needs about 9 billion euros, which exceeds its market value. CEO Klaus-Dieter Maubach said in July 8, 2022 that the company risked up to 10 billion euros in losses this year.

$11.3 billion margin call due to rise in gas prices

In January 2022, Uniper, which invested 1 billion euros in Nord Stream 2, received a $11.3 billion margin call due to the rise in gas prices.

Notes