Wednesday, March 22, 2023

Latest Posts

German Energy Giant Has Published Record Loss

While Uniper is among the companies most affected by the energy crisis with Russia, it reported a loss of 40 billion euros in the first nine months of the year. Uniper SE reported a net loss of nearly 40 billion euros ($39.3 billion) in the first nine months of the year, as the company struggled to survive after Russia cut off gas supplies to Europe.

The German energy giant, which is currently preparing to receive an aid package of 30 billion euros, became one of the companies most affected by Russia’s supply cuts with the start of the Ukraine war. The energy crisis in Europe this year has driven gas prices to record highs, well above what public institutions have paid for the pipeline from Russia under long-term contracts.

Uniper stated that 10 billion euros of the loss, disclosed according to international financial reporting standards, was incurred for the purchase of new gas, and 31 billion euros was due to unforeseen term losses. An adjusted net loss of 3.2 billion euros was recorded in the first nine months of the year, the company said on Thursday.

Uniper CFO Tiina Tuomela said, “Uniper has been supplying natural gas at significantly higher prices for a long time, and as it is known, the fact that the costs of new gas supply are not passed on to consumers caused a great loss.” Uniper is considered indispensable for Germany’s energy system and its failure is considered to have a domino effect on the sector. The Düsseldorf-based company said details of the government support package are currently being finalized.

In September, the German government decided to buy and nationalize 99 percent of Uniper, in which Finnish public company Fortum has a majority stake, to secure supply during the global energy crisis. German Deputy Finance Minister Florian Toncar also announced that the government will ensure that Uniper operates and has the necessary financing.

Latest Posts

Don't Miss