The nationalized energy giant Uniper continues to forecast significant losses through the end of the year. The expected result of the assessment of derivatives and reserves in connection with the reduction in gas supplies to Russia amounted to 31 billion euros, said Germany’s largest gas importer. A more accurate forecast for 2022 is not yet possible given the “high degree of uncertainty” regarding gas supplies and the level of prices for the purchase of replacement volumes.
“The reduction in Russian gas supplies has had a significant adverse impact on Uniper’s results for the first nine months of 2022… The net loss under IFRS of approximately €40 billion includes approximately €10 billion of realized volume replacement costs and approximately €31 billion of expected future costs, losses from the impact of the valuation of derivative financial instruments and the creation reserves associated with a reduction in gas supplies in Russia as of September 30, 2022,” the company said on its website.
These figures were announced in Düsseldorf, where the concern presented an third quarter report. The company explained that in order to fulfill contracts with customers, it was forced to buy gas on the spot market at high prices. “Uniper has been purchasing gas at significantly higher prices for some time and is known to have recorded significant losses as the cost of replacing the purchase of new gas is not passed on to consumers,” said the company’s chief financial officer, Tiina Tuomela, in a statement commenting on the report.
Agreement of the stabilization package with the federal government is at the final stage.
Massive nationalization imminent
A month ago, the federal government, Uniper and its previous majority shareholder Fortum from Finland agreed a month ago on a massive nationalization of Uniper. Among other things, it is planned to increase capital and acquire Uniper shares from Fortum. After that, the federal government should become the main shareholder of the energy giant – about 98.5%. Shareholders are expected to vote for such a decision at an extraordinary general meeting in the second half of December.
Dusseldorf SDax-Konzern, focused mainly on gas supplies from Russia, is also experiencing serious problems – the company is a supplier more than 100 municipal utilities and large companies and thus plays a key role in Germany’s natural gas supply. Now the concern has to buy the missing raw materials on the spot market at high prices. To date, Uniper has used a €14 billion credit facility provided by the state bank KfW.
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