By Scott Kanowsky
Investing.com -- Uniper SE (ETR:UN01) said it expects profits to improve this year after the bottom-line figure slumped to a record loss in 2022 due to high gas costs linked to the stoppage of key Russian gas supplies.
The German energy giant, which was nationalized late last year, now expects to report adjusted earnings before interest and taxes in 2023 "above the prior-year level," according to a statement on Friday. Adjusted net income is also seen increasing.
Last year, Uniper posted an adjusted pre-tax loss of €10.9 billion (€1 = $1.0634) and an adjusted net loss of €7.4B.
Uniper is an indispensable part of Germany's energy infrastructure, providing gas to nearly half of the country's local utilities. It also owns around a quarter of Germany's gas storage capacity.
The German government was forced to step in to rescue Uniper last summer, after Moscow's decision to stop shipments of natural gas caused the company to make unsustainable purchases of gas on the spot market to cover its commitments to clients. That drove up wholesale gas prices in Europe heavily, resulting in massive losses for the group.
“The burden of gas replacement procurement costs has put our company in an extremely difficult situation, which was resolved by government support," said outgoing Chief Executive Officer Klaus-Dieter Maubach. "Uniper is at its core a strong company that has successfully got through the most difficult year in its history."
Uniper said the gas replacement issue will be overcome by the end of 2024 as energy prices move lower, adding that this will eventually lead to the phasing out of the support from Berlin as well as credit facilities from state-owned bank KfW.
Shares in Uniper edged up in early European trading, but have fallen by more than 92% over the past one-year period.