After nearly going bankrupt during the 2022 energy crisis and posting a record profit last year, the German energy company Uniper has returned to normality, the company's chief executive said on Wednesday.
"2024 will now be the year of new beginnings," Michael Lewis said in Dusseldorf. "Uniper is not only back, it is more resilient, financially stronger and more focused than before."
The company, which was taken over by the German government in the wake of the energy crisis, confirmed the key figures for 2023 published a fortnight ago. These showed that good business from electricity generation and gas trading resulted in an adjusted net profit of over €4.4 billion ($4.76 billion), compared to 2022's negative €7.4 billion.
Uniper reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of €7.2 billion.
Due to falling raw material prices, the firm anticipates a significantly lower profit for 2024. Adjusted EBITDA is expected to be in the range of €1.5 billion to €2 billion. Adjusted net profit is expected to be between €0.7 billion and €1.1 billion.
"The earnings situation of 2023 will normalize significantly this year," said Lewis.
The chief executive reaffirmed the new strategy presented last year, which includes a reorganization of electricity generation towards renewables. The current share of green production of 20% is to be increased to 80% by 2030.
"We want to have phased out coal by 2029," said Lewis. The natural gas supply portfolio of currently more than 200 terawatt hours is to be gradually converted 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. It supplies more than 1,000 municipal utilities and large industrial companies.
The company also operates many power plants in Germany and in four other European countries that generate electricity from gas, coal, hydropower, nuclear power and oil. Investments in further renewable energies and hydrogen-capable gas-fired power plants are planned.
Uniper is also Germany's largest natural gas storage operator and intends to invest in hydrogen storage. Uniper does not supply private customers, except for district heating.
The company got into difficulties in 2022 after Russia first reduced and then stopped its gas supplies following the attack on Ukraine. The replacement purchases cost billions. To prevent Uniper from collapsing, Germany paid subsidies of around €13.5 billion and became the majority shareholder with a stake of over 99%.
The federal government is obliged to reduce its stake to a maximum of 25% plus one share by 2028 at the latest.
The aid was authorized by the European Commission subject to conditions. Uniper is obliged to repay the excess amount to the federal government once it reaches a certain equity ratio.
The company expects such a repayment to be due at the beginning of 2025. It has already recognized a provision of €2.2 billion for this in 2023.
"It is appropriate and fair for Uniper to compensate German taxpayers for their commitment to stabilizing Uniper in 2022," said Lewis.
