Germany utility Uniper SE said it will overcome the problems generated by Russian gas cuts by 2024 at the latest.
(Bloomberg) — Germany utility Uniper SE said it will overcome the problems generated by Russian gas cuts by 2024 at the latest.
The company — which was nationalized by the German government last year after the energy crisis put it on the brink of collapse — said it will continue to face high gas replacement costs in the next years, according to an earnings report released Friday. The financial aid from the state to support liquidity needs “will be phasing out over time.”
“We must be aware that in future quarters, too, Uniper’s earnings will depend to a significant extent on the amount of gas replacement procurement costs. These costs, in turn, depend largely on the price of gas,” said Chief Financial Officer Tiina Tuomela.
Once Germany’s largest importer of Russian gas, Uniper was among the companies hardest-hit by the war in Ukraine, requiring a mammoth rescue package from the government that led to its nationalization late last year.
Yet a mostly mild winter and strong inflows from other countries lowered gas prices by more than 80% from their peaks last summer. That has helped Uniper reduce the cost of replacing curtailed Russian supplies, and more than halved its expected losses.
Europe still faces the prospect of gas shortages this year unless it further curbs demand, the International Energy Agency warned earlier this week, while other energy giants are preparing for higher gas prices to linger.
Uniper said it expects an increase in adjusted net income this year compared to 2022.
–With assistance from Petra Sorge.
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