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Net losses of more than 12 billion euros in the first half for the German Uniper

Uniper posted net losses of more than 12 billion euros in the first half of 2022, with the now German state-backed utility providing a prime example of the depth of Europe’s energy crisis.

Russia has sharply cut gas flows to the European Union in response to Western sanctions following Moscow’s war of aggression against Ukraine, and the effects are already being seen across the Old Continent’s energy and corporate spectrum and bringing the spectrum closer of recession.

“Uniper has been playing a key role for months in stabilizing the flow of natural gas to Germany – at the cost of billions in losses due to the Russian supply curtailment,” company CEO Klaus-Dieter Maubach said in the statement accompanying the results announcement.

The losses include 6.5 billion euros in losses from future gas shortages, as well as 2.7 billion euros in provisions related to the company’s loan for the now-defunct new Russian-German Nord Stream 2 pipeline, which went on ice due to war’s.

Supply constraints have forced Uniper to buy gas on the spot market in order to meet its contracts, bringing it to the brink of bankruptcy. The German government then stepped in with a €17bn bailout, as a possible collapse of the company would send the country’s energy system into a domino collapse.

Uniper’s adjusted loss before interest and taxes for the first half was 564 million euros, compared to profits of 580 million euros in the same period last year.

The outlook for the whole of 2022 is particularly negative, with the company expecting an improvement in results in 2023 and an exit from the spectrum of net losses in 2024, as CFO Tiina Tuomela said in her statement.

Source: Capital

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