The nationalized energy company Uniper ended 2023 with a record profit. This year, Germany’s largest gas trader will earn less, but still earn well.
After a near-bankruptcy in the energy crisis year of 2022 and a record profit in 2023, the energy company Uniper sees a return to normality. “2024 will now be the year of departure,” said Uniper boss Michael Lewis on Wednesday in Düsseldorf. “Uniper is not only back, it is more resilient, financially stronger and more targeted than before.” Resilient means resistant.
The group, which was nationalized in the wake of the energy crisis, confirmed the key data for 2023 that was published two weeks ago. According to this, good business with electricity generation and gas trading had brought Uniper an adjusted annual surplus of over 4.4 billion euros (2022: minus 7.4 billion). The group reported adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) on Wednesday at 7.2 billion euros.
Due to falling raw material prices, the group expects a significantly lower profit for 2024. Adjusted Ebitda is expected to be in a range of 1.5 to 2 billion euros. The adjusted consolidated net profit is expected to be between 0.7 and 1.1 billion euros. “The 2023 profit situation will normalize significantly this year,” Lewis said.
Uniper is striving for a green portfolio
Lewis reiterated the new strategy presented last year. Among other things, it envisages a conversion of electricity generation towards renewables. The aim is to increase the current share of green production of 20 percent to 80 percent by 2030. “We want to have phased out coal by 2029,” said Lewis. The aim is to gradually convert the natural gas supply portfolio, which currently totals more than 200 terawatt hours, into a green portfolio. “Our long-term goal is to be completely climate neutral by 2040,” emphasized Lewis.
Uniper is Germany’s largest gas trader. More than 1,000 municipal utilities and large industrial companies are supplied. The company also operates many power plants in Germany and four other European countries that generate electricity from gas, coal, hydropower, nuclear power and oil. Investments in further renewable energies and hydrogen-capable gas power plants are planned. Uniper is also Germany’s largest natural gas storage operator. Uniper also wants to invest in hydrogen storage. Uniper does not supply private customers with the exception of district heating.
Uniper ran into difficulties in 2022 after Russia first reduced and then stopped its gas deliveries following the attack on Ukraine. The replacement purchases cost billions. To ensure that Uniper did not collapse, Germany paid aid of around 13.5 billion euros and became the majority owner with over 99 percent. The federal government is obliged to reduce its stake to a maximum of 25 percent plus one share by 2028 at the latest. The aid was approved by the EU Commission under conditions. Uniper is obliged to pay back the excess amount to the federal government once it reaches a certain level of equity capital.
Uniper expects such a repayment to be due at the beginning of 2025. In 2023, the company has already made a provision for this amounting to 2.2 billion euros. “It is appropriate and fair for Uniper to compensate German taxpayers for their commitment to stabilizing Uniper in 2022,” Lewis said.
Annual report 2023
Source: Stern
