Gas supplier Uniper experiences continuous downturn - Uniper's stock drops once more in MDax index
Uniper's Gas Woes Continue:
Uniper, a vital player in Germany's gas market, is battling steep financial consequences due to decreased gas deliveries from Russia for weeks. As the biggest gas importer in Germany, the company is compelled to purchase pricier gas on the market to fulfill contracts, given the supply throttling and heavy dependence on Russian gas. This situation has led to dire liquidity issues, as Uniper hasn't managed to pass on the increased prices to its customers yet. Uniper serves over 100 municipal utilities and industrial firms. Reports suggest that the German government will soon intervene, offering a 30% stake and the gas surcharge to aid Uniper.
However, Uniper will bear the full economic loss stemming from purchasing replacement gas for Russian gas supplies until the end of September. This gas surcharge, decided by the federal government, will take effect from October 1st, enabling Uniper to distribute most of its costs to customers. Consequently, Uniper is weighed down with massive debt.
Billions in the Red
The adjusted operating result (adjusted EBIT) fell sharply to a negative €564 million euros, contrasting with a positive operating profit of €580 million euros a year ago. The adjusted net result plummeted to a loss of €359 million euros, compared to a profit of €485 million euros. The company is reluctant to make predictions, but expects losses for the year. Instead, they aim to refine the result in 2023 and finally exit the loss zone in 2024.
"Uniper has been a critical player in maintaining Germany's gas supply for months - at the cost of billions in losses due to the decline in Russian gas supplies," said CEO Klaus-Dieter Maubach. The federal government has acknowledged this, and appropriate measures have been taken. "Our top priority now is to implement the stabilization package swiftly," he added.
Uniper's Share Plummets Again
Uniper Share:A dealer noted that the half-year figures were as disastrous as anticipated. JPMorgan analyst Vincent Ayral observed that, while the figures were weak, they were overshadowed by the immense scale of the Russian gas shortage. Lower production capacities on the British sales market also contributed to the negative impact. The shares of Uniper's competitors, E.on and RWE, also experienced slight losses following Uniper's shake-up.
BÖRSE ONLINE advised only the bravest and most risk-tolerant investors to consider purchasing a few Uniper shares - with a long-term investment horizon.
- Uniper, a significant player in both the German energy and finance sectors, is currently grappling with massive financial losses estimated in billions due to the decline in Russian gas supplies, a key industry partner.
- As a result of the Russian gas shortage, Uniper, a pivotal player in Germany's gas market serving over 100 municipal utilities and industrial firms, faces a precarious financial situation, potentially leading to further turbulence in the German energy and finance industries.
