Loss of billions for Uniper in the first quarter

The economic turmoil resulting from the Russian war of aggression has led to a billion-euro loss at Uniper in the first quarter. As the company announced in an investor conference, preliminary adjusted earnings before interest and taxes (adjusted EBIT) for the first three months will amount to around -830 million euros (previous year: 731 million euros). Preliminary unadjusted net income shows a loss of 3 billion euros.

The billion euro loss was partly due to impairment charges of 2 billion euros relating to the Nord Stream 2 stake, which has been written off, and Uniper's Russian power plant subsidiary Unipro. But there was also an operating loss, which, according to the company, was primarily attributable to the gas midstream and gas storage business. According to Uniper, "due to the current market environment," gas storage was reduced in the first quarter in favor of future quarters. The decision to leave more gas in storage resulted in a "significant shift" in earnings from the first quarter to subsequent quarters of the current fiscal year, it said. Uniper had retained gas volumes worth around €750 million in the first quarter to benefit from higher prices. In addition to "commercial reasons," the company also cited security of supply aspects, as it had thus "held back additional gas volumes"

Uniper CFO Tiina Tuomela said Wednesday it was in talks with Gazprom regarding payment for gas supplies. For Uniper, the first payments are due at the end of May, and it is working with both Gazprom and the German government to resolve the ruble issue, Tuomela said.

As for gas supplies to Poland being halted by Russia, Uniper does not expect any restrictions. This will "have no impact on transit deliveries through Poland," Uniper CCO Niek den Hollander said at the analysts' conference.