Uniper’s reported results for the first half of 2022 showed heavy losses, owing to the impact of reduced gas imports from Russia. Main results:-
- An adjusted EBIT of – €564 million, and adjusted net income of – €359 million, significantly lower that previous year figures;
- An IFRS (International Financial Reporting Standards) net loss of more than €12 billion – largely driven by anticipation of gas curtailment losses;
- Economic net debt is significantly higher, in particular because of negative operating cash flow;
- Negative earnings are expected for full year 2022;
- Approval of the stabilisation package (a huge credit facility arranged with the German government) at an Extraordinary General Meeting in the autumn of 2022 is anticipated.
The Uniper adjusted EBIT of – €564 million in the first half of the 2022 financial year compares to an H1 2021figure of €580 million.
Commodities earnings declined significantly relative to the prior-year period. The decline is mainly attributable to the gas business, which is being adversely affected by reduced gas deliveries from Russia. To fulfill its customer contracts, Uniper has been forced to buy gas on spot market at high prices.
Adjusted net income, which largely tracks adjusted EBIT, stood at – €359 million after six months, significantly below prior-year adjusted net income of €485 million.
The IFRS net result amounts to a loss of more than €12 billion. Slightly more than half of it (€6.5 billion) is related to anticipated future impact from gas curtailments. Additionally, the IFRS Net result reflects impairments of total €2.7 billion allocated to the Nord Stream 2 loan.
Economic net debt rose significantly from €324 million to €2057 million. The main reason was negative cash flow in conjunction with a reduction in Russian gas deliveries along with measures to improve liquidity in the gas and emissions-allowance businesses in late 2021.
An earnings forecast for the current financial year still cannot be issued within an adequate range because of the volatile environment. However, Uniper expects to record negative earnings owing to the significant reduction in Russian gas deliveries.
Uniper CEO Klaus-Dieter Maubach commented: "Uniper has for months been playing a crucial role in stabilising Germany’s gas supply-at the cost of billions in losses resulting from the sharp drop in gas deliveries from Russia. The German federal government recognised this and … on 22 July, together with Uniper and Fortum, it agreed to a package of measures to stabilise Uniper. This will prevent a chain reaction that would do much more damage. Our top priority now is to swiftly implement the stabilisation package."
Uniper CFO Tiina Tuomela commented: "Earnings for the first half of 2022 already reflect the significant adverse impact of reduced gas deliveries from Russia. Nevertheless, the operating performance of our business was solid, and power output was at the prior-year level. This demonstrates that our power plants are playing an important role in supplying people and industry. The volatile environment doesn’t currently permit an earnings forecast within an adequate range for the current financial year. However, we expect to record negative earnings owing to the significant reduction in Russian gas deliveries. We expect an earnings improvement in 2023 and aim to leave the loss zone beginning in 2024."