Uniper Earnings Match Expectations, Flags State-Aid Related Provision

By Pierre Bertrand

Uniper said it expects to report adjusted earnings within its forecast range and that it would book a provision to repay the German government for aid it received after Russian gas sources were curtailed in 2022.

The German utility, citing preliminary figures, said that it made more than 4.4 billion euros ($4.72 billion) in adjusted net income in 2023, and that result fell within its EUR4 billion to EUR5 billion forecast.

The company also expects adjusted earnings before interest and taxes for the year at above EUR6.3 billion, which too is within its forecast for the year.

Uniper benefited from what it said was a favorable market environment particularly from hedging transactions in the area of electricity generation from coal and gas-fired power plants and in the gas midstream business. "In addition, successful forward transactions to hedge outstanding gas supply obligations resulting from the curtailment of Russian gas supplies had a positive impact on earnings."

Uniper said it will recognize a provision of about EUR2.3 billion for 2023 for a likely payment to the German government related to the bail-out it received from Berlin.

The company added that its payment obligation will be due in early 2025 and that the amount paid would be dependent on the result for 2024.

Uniper said that the recognition of this provision would have a full impact on its annual result.

Uniper will publish its year-end result for 2023 on Feb. 28.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

February 15, 2024 06:59 ET (11:59 GMT)

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