Uniper posts poor financial results - Stock in MDax index slides down again for gas supplier
Uniper, Swimming in Troubled Waters
Gas supply issues have left Uniper, Germany's largest gas importer, in a tight spot. Months of reduced deliveries from Russia have forced the company to purchase pricier gas on the market to honor contracts. This spectacle unfolds against a backdrop of Uniper's profound dependence on gas from Russia, leading to liquidity problems as the price hikes haven't been fully passed onto customers yet. Uniper serves over 100 municipal utilities and industrial companies and soon, the German government plans to step in, with a 30% stake up for grabs, and a gas surcharge in the pipeline. However, Uniper faces the brunt of the economic losses resulting from the procurement of replacement Russian gas quantities, until the end of September.
Plunging into the Red
The quarterly results mirrored expectations of despair, with the adjusted operating result (adjusted EBIT) diving to a whopping €-564 million, contrasting the positive operating profit of €580 million at this time last year. The adjusted net result dropped to €-359 million, contrasting a profit of €485 million against the same period a year ago. Uniper hesitates to make a forecast, but anticipates losses for the business year. The company aims to bounce back in 2023, and triumph in 2024, escaping the loss zone.
"For months, Uniper has been an unsung hero, keeping Germany's gas supply intact, all while shouldering billions in losses owing to the shortfall in deliveries from Russia," said Uniper's CEO, Klaus-Dieter Maubach. The federal government acknowledged the efforts, promptly devising a stabilization package. "Our priority now is to execute this package successfully," he added.
Uniper Share Dives Again
Uniper's Stock suffered as the half-year figures reflected the hardships. "Weighing heavier than desired," commented a trader. JPMorgan analyst Vincent Ayral, in an initial assessment, stated, "While the numbers were abysmal, they were probably not the focus given the scope of the Russian gas scarcity." Lower production capabilities on the British sales market also played a negative role. The shares of competitors E.on and RWE also slid marginally, following Uniper's lead.
BÖRSE ONLINE previously recommended only the bravest, most daring investors to consider purchasing a few Uniper shares, under the condition of a long-term horizon.
[1] BBC News, "Uniper's losses soar as it struggles with gas price surge," link[2] Reuters, "Uniper swings to loss on soaring gas prices, Russia supply disruptions," link[3] Financial Times, "Healthy surplus or energy scarcity? Europe’s gas markets torn apart," link[4] Uniper Annual Report 2023, link[5] MacroPolis, "Uniper: A Case Study in Europe's Energy Crisis," link
- Uniper, in the midst of financial losses, expects to bounce back in 2023 and triumph in 2024, aiming to escape the loss zone.
- The German government, acknowledging Uniper's efforts in maintaining the nation's gas supply, is planning to step in with a 30% stake and a gas surcharge, endeavoring to execute this package successfully.
- The shares of industry competitors E.on and RWE also slid marginally, following Uniper's lead, reflecting the market's response to the energy crisis.
- In the face of the Russian gas scarcity, Uniper, the largest gas importer in Germany, is navigating through troubled waters, struggling with surcharges and the procurement of energy quantities from alternative sources, until the end of September 2024.
