Uniper Swings to Profit as Lower Commodity Prices Boost Performance
By Giulia Petroni
German utility Uniper swung to a profit in the first nine months of the year, when its performance benefited from lower commodity prices and hedging transactions tied to its power-generation and gas midstream businesses.
The company said Tuesday that it registered a net profit of 9.77 billion euros ($10.37 billion) in the period compared with a loss of EUR40.31 billion a year prior. The result was strongly influenced by lower prices and the resulting change in the value of derivatives used for hedging purposes, as well as by the complete release of provisions for additional anticipated future losses in the gas portfolio.
No additional costs for gas replacement procurement were incurred in the period, Uniper said.
As anticipated during preliminary results, adjusted net profit was EUR3.74 billion, while adjusted earnings before interest and taxes came in at EUR5.48 billion. Uniper confirmed that it expects adjusted net profit between EUR4 billion and EUR5 billion and adjusted EBIT of EUR6 billion-EUR7 billion in the full year.
The utility was bailed out by the German government last year after incurring in record losses due to Russian gas curtailments and high prices on the spot market, and has since then taken steps that pave the way to exit government ownership.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
October 31, 2023 03:08 ET (07:08 GMT)
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