Uniper incurs €40b net loss in Jan-Sep

Germany's largest gas importer Uniper, which was bought recently from Finland's state majority-owned energy giant Fortum, recorded a net loss of 40 billion euros in the first nine months of this year due to record high gas prices, the company announced on Thursday, reported Xinhua.

This figure contains "10 billion euros of realized costs for replacement volumes, and roughly 31 billion euros of anticipated future losses from valuation effects on derivatives and provision built-ups related to the Russian gas curtailments as of September 30, 2022," according to the company's statement.

"Uniper has for some time been procuring gas at significantly higher prices," said Uniper CFO Tiina Tuomela in the statement, adding that the high cost of procuring new gas was "not being passed through to consumers."

Gas prices in Europe have more than doubled since the start of the Russia-Ukraine conflict. After peaking at almost 350 euros per megawatt hour, European TTF (Title Transfer Facility) gas futures were trading at around 133 euros on Thursday.

In September, the German government rescued Uniper from insolvency because of its key role in Germany's energy supply. After a capital increase and the acquisition of a share package from Finnish energy group Fortum, the government's stake will be around 99 percent.

The government was acquiring the "main rights of influence and control in the company so that it can safeguard energy security in Germany," the Ministry for Economic Affairs and Climate Action (BMWK) said at the time of the purchase decision.

Under the so-called stabilization package, the company's short-term liquidity has been ensured by credit lines from the state-owned KfW Bank. By the end of October, 14 billion euros of the total credit line had been utilized, according to the company.

With a total price tag of at least 30 billion euros, the nationalization of Uniper will be the costliest state rescue of a company in Germany's history.

For the full year 2022, Uniper is expecting full-year adjusted EBIT (earnings before interest and taxes) and adjusted net income to be "significantly negative." It was impossible to give a more precise earnings outlook due to the "high degree of uncertainty" regarding delivered gas volumes and price levels, the company said.

Finland's state majority-owned energy giant Fortum in September signed an agreement to sell its entire stakes in the gas importer Uniper to the German government.