D.Power plant operator Uniper has lowered its earnings forecasts for the current year due to limited gas supplies from Russia and is talking to the federal government about stabilization measures. The company is looking into ways to further secure the company’s liquidity, Uniper announced Wednesday night in Düsseldorf.
“We already had a significantly increased liquidity requirement at the end of last year due to the huge increase in gas prices,” explained CEO Klaus-Dieter Maubach. “To counteract this, we had already extended our credit lines and, among other things, we received from the KfW state a facility for an amount of two billion euros, which we have not used up to now”.
Maubach explained that business development had “deteriorated significantly” due to the war in Ukraine and the resulting sharp reduction in gas supplies from Russia. “Therefore, we are talking again with the Confederation about stabilization measures, for which certain instruments are possible, such as guarantees and guarantee payments, an increase in the current credit line and even participation in the form of equity”.
Buy expensive replacement quantities
After hours on the Tradegate trading platform, Uniper stock lost more than seven percent of Xetra’s closing price to a minimum. They had already closed the main trade with less than 3.4 percent. On Thursday, the price fell sharply over 22% at the start of trading.
M-Dax Company suspended its previous earnings forecasts. In the first half of the year, based on preliminary data, operating earnings are also expected to be significantly lower than those of the same period last year, he said. A year ago Uniper had earned 580 million euros in the first six months before interest, taxes and special effects. Adjusted net profit at the time was € 485 million.
The background for the development is the effects of the current restrictions on gas supply imposed by the Russian state-owned company Gazprom. According to Uniper, since mid-June it has received from Gazprom only 40 per cent of the contractually guaranteed volumes of gas and has had to procure replacement volumes at a high price. Uniper assumes that if the Federal Network Agency determines and communicates the gas shortage, some of the current charges can be passed on to customers.