On 29 August Uniper drew down €2 billion under its existing credit facility with the KfW banking group, thereby using to the fullest extent its credit facility of €9 billion, a move necessitated by a dramatic increase in energy prices in recent days and the need for further liquid assets as security deposits.
Uniper has now requested an extension to the KfW credit facility of an additional €4 billion. This is intended to secure the company's short-term liquidity.
Uniper's liquidity situation is currently impacted by two factors: reduced Russian gas deliveries and the associated significant price increases for gas and electricity:
Since 14 June, Uniper has received only part of the contractually agreed gas supply from Russia. The shortfall in deliveries now amounts to 80 %. To ensure security of supply for its customers, Uniper is procuring the missing volumes, on the market at significantly higher prices – at the current level of approximately €300/MWh, gas prices have increased more than six-fold in a year. As Uniper has so far borne the higher procurement costs alone, it is currently accumulating cash losses of well over €100 million per day.
In addition, Uniper must provide security deposits (so-called ‘margining’) for a large portion of its sales transactions for gas and electricity. The value of these security deposits is dependent on the current energy price compared to the price level at the conclusion of the sales transaction and so has increased significantly due to the extreme developments in the European energy markets. Even though these cash outflows are only temporary (Uniper will receive the security deposits back at the time of delivery), Uniper's liquidity is strongly affected.
Securing short-term liquidity via KfW credit facilities is one of the pillars of the Uniper stabilisation package announced on 22 July. The implementation and detailed structuring of the other elements – including equity measures – are currently being further advanced between representatives of the German government, Fortum and Uniper. The package of measures is subject to regulatory approvals, in particular from the EU Commission, and the approval of Uniper shareholders, who are to vote on the stabilization measures at an extraordinary general meeting scheduled later this year.
Uniper is currently working on a permanent solution with the German government.
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