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Uniper reports decline in earnings due to lower Russian gas supplies

17 August 2022 20:46 (UTC+04:00)
Uniper reports decline in earnings due to lower Russian gas supplies

By Trend

Earnings of German Uniper company at the Global Commodities segment declined significantly relative to the prior-year period due to the lower gas supplies from Russia, Trend reports citing the company.

“Following very good earnings in the prior-year period, the decline is mainly attributable to the gas business, which is being adversely affected by reduced gas deliveries from Russia. To fulfill its customer contracts, Uniper has been forced to buy gas on spot market at high prices. The non-recurrence of extraordinary optimization income due to extremely cold weather in the prior-year period adversely affected the international portfolio in the first six months of this year,” Uniper said in its latest report.

Earnings at the European Generation segment were likewise significantly below the prior-year period.

“As in the prior year, this is particularly attributable to an increase in the fair value measurement of provisions for carbon allowances, which are offset by hedges that will not be settled until the fourth quarter of 2022. In addition, the Nordic hydropower business recorded significantly lower earnings owing to price discrepancies between Sweden’s so-called system prices and the delivery prices in the relevant price zones. Lower income from the U.K. capacity market, higher delivery, and procurement costs for hard coal as part of Uniper’s transitional strategy to diversify its coal procurement, and the disposal of Schkopau power station in the fall of 2021 likewise adversely affected adjusted EBIT,” reads the report.

Uniper notes that earnings at the Russian Power Generation segment were significantly above the prior-year level. The recommissioning of unit 3 at Beryozovskaya power station in May 2021 and the associated income from the capacity mechanism along with higher sales volume and prices in the Siberian price zone were the main reasons. The expiration of long-term capacity payments for two generating units at Surgutskaya power station was an adverse factor.

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