Germany’s Uniper records a net loss of 40 billion euros

Soon-to-be-nationalized gas importer Uniper reported a record 40 billion euros ($39.3 billion) net loss, among the largest in German company history, reflecting expected future losses following Russia’s move to halt supplies.

The loss further underscores how Russia’s decision to sever a decades-long supply relationship with Europe, particularly Germany, is affecting the continent’s energy sector, with Uniper becoming the biggest corporate casualty of the crisis so far.

“Our half-year figures have already shown that this has had a massive impact on our financial results,” said Chief Financial Officer Tiina Tuomela, adding that an agreed stabilization package for Germany’s acquisition of Uniper is currently being finalized.

According to Uniper, the net loss takes into account 10 billion euros in realized losses incurred by the company replacing Russian gas volumes on the spot market at much higher prices, as well as 31 billion euros in future losses related to this issue.

Tuomela said talks are now focused on replacing a last-minute gas levy with an instrument that would effectively pass on the massive losses to Uniper’s future owner: the federal government.

At the same time, Uniper has threatened legal action against its former main supplier Gazprom and is considering a case before a Swedish arbitration court to claim billions in damages.

“We are also working hard to restructure our gas portfolio to mitigate risk and end losses from suspended Russian gas supplies by 2024,” Tuomela said.

The group’s top priorities remain its planned exit from the Russian market, where it owns an 83.7 percent stake in Unipro, she said, adding that the Russian division’s recent performance has increased interest from potential buyers .

Uniper shares fell 3 percent.

As part of the agreement with Berlin, Uniper received EUR 18 billion in credit lines from state lender KfW, of which EUR 14 billion had been drawn down by the end of October, it said. Germany’s Uniper records a net loss of 40 billion euros

Fry Electronics Team

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