German utility Uniper SE — which was bailed out at the height of last year’s energy crisis — said it’s considering repaying parts of the state aid after earning billions of euros so far this year.
(Bloomberg) — German utility Uniper SE — which was bailed out at the height of last year’s energy crisis — said it’s considering repaying parts of the state aid after earning billions of euros so far this year.
The company said it expects adjusted earnings before interest and taxes to total €3.7 billion ($4.1 billion) in the first six months, citing profitable hedging transactions. It also predicted “exceptional” performance for the rest of the year, with earnings on track to reach a “mid-single digit billion” amount, according to a statement released late Tuesday.
Uniper reports first-half earnings on Aug. 1.
The utility was one of the hardest hit by Russia’s curtailment of gas supplies to Europe last year, which left Uniper scrambling for alternative shipments amid record energy prices. However, a mild winter and nationwide demand reduction have kept gas storage facilities filled, leading to a steep drop in market prices.
Uniper hasn’t incurred further costs for replacing missing Russian gas volumes since the end of last year, and it hasn’t needed additional equity injections. It’s therefore “reviewing its obligation regarding a repayment of excess amounts under the EU Commission’s state aid approval and will continue to engage with the German Government on this matter,” it said.
Uniper shares surged as much as 27% on Wednesday.
The government’s current plan is to reduce its equity stake to 25% by 2028, from 99% currently. Bloomberg Intelligence analysts said that timeline may be “too conservative” given the utility’s recovery.
(Updates with scheduled earnings date in third paragraph.)
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