German gas importer Uniper said Russia’s suspension of gas supplies has left “massive scars” in its results as it reported a net loss of €40bn for the first nine months of the year, one of the largest losses in corporate history.
Soon-to-be-nationalised Uniper is one of the biggest corporate casualties of the war in Ukraine, with its shares losing 93% of their value since the start of the year.
Russia stopping gas deliveries has forced the company to buy more expensive gas in the spot market.
“To ensure customers’ supply security, Uniper has for some time been procuring gas at significantly higher prices and, as is well known, has thus recorded considerable losses because the replacement costs of procuring new gas aren’t being passed through to consumers,” said Uniper chief financial officer Tiina Tuomela.
“Our half-year numbers already indicated that this has left massive scars in our financial results.”
Uniper said the nine-month loss contains €10bn of realised costs for replacement gas volumes and around €31bn of anticipated future losses “from valuation effects on derivatives and provision built-ups" related to Russia ending gas supplies as of 30 September this year.
The German government is providing a €29bn bailout to save Uniper from insolvency. It will take a 98.6% stake in the company by buying out its current owner Fortum and provide an €8bn capital injection.
The support measures also include credit facilities of €18bn, of which Uniper has drawn €14bn.
Tuomela said implementing the stabilisation package "has the highest priority”.
“We and the Federal Government are currently finalising the details of the support measures relating to the suspension of the gas surcharge.
"We are also working intensively to restructure our gas portfolio in order to minimise risks and to end by 2024 the losses resulting from suspended Russian gas deliveries,” she said.
“Uniper will play a key role in ensuring Germany’s supply of power and gas for winter 2022/2023 and subsequent years,” she said, adding that the company is moving forward with the construction of Germany’s first LNG import terminal.