Germany’s utility giant Uniper expects its adjusted net income for the first nine months of the year to be five times lower compared to last year’s levels, on the back of losses from hedging and lost revenues due to the non-delivery of Russian gas, the state-owned firm said on Friday.
Uniper, which reports full nine-month results on November 6, expects earnings “to remain significantly below the previous year’s nine months figures as was already the case in the first quarter and the first half year of 2025,” the company said in a preliminary results update today.
Based on preliminary and unaudited figures, Uniper expects adjusted EBITDA to slump to $744 million (641 million euros), significantly down from $2.52 billion (2.176 billion euros) last year. Adjusted net income is expected at $311 million (268 million euros), five times lower compared to $1.58 billion (1.324 billion euros) for the same period of 2024.
“The decline in earnings is due to reduced earnings contributions from hedging transactions in the Flexible Generation segment, in line with the declines in the previous quarters,” Uniper said.
Past optimization activities in the gas portfolio and the loss of revenues from the procurement of gas due to the non-delivery of gas volumes from Russia also contributed to the decline in earnings compared to the previous year.
Germany had to nationalize Uniper in 2022 to avoid its collapse amid soaring gas prices and a lack of Russian supply in the wake of the Ukraine invasion and the EU sanction barrage. The Federal Government took over 99% of the company in order to secure Germany’s energy supply. The bailout by the Federal Government goes alongside a ban on bonus and dividend payments at the company.
The total bill for Uniper’s nationalization came in at $53 billion.
After the nationalization, Germany owns more than 99% of Uniper, whose shares are still listed in Frankfurt, but trade is thin.
By Michael Kern for Oilprice.com
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