A German energy giant has reported a £35bn loss – one of the biggest in corporate history – after Russia choked off gas supplies.
Uniper, which yesterday published results for the first nine months of the year, has become the biggest corporate casualty so far of the Kremlin’s action.
The group, which has seven power stations in the UK as well as a gas storage facility, high-pressure gas pipelines and an operation in Kent to convert imported liquid natural gas (LNG) back into natural gas, is in the process of being nationalised as a result of the crisis.
Uniper, which yesterday published results for the first nine months of the year, has become the biggest corporate casualty so far of the Kremlin’s action
Shares fell more than 5 per cent on the latest results and are down by 93 per cent for the year to date, taking its value from £13.3bn to £960m.
When Russia cut off gas to Europe it left Uniper having to buy supplies at much higher prices, which were not passed on to consumers.
Paying for the more expensive supplies saw the company incur losses of up to £87m a day when gas prices spiked over the summer, falling to less than £9m a day by the end of October as prices cooled.
That has added up to nearly £9bn so far with an expected £27bn of future losses related to the same issue pencilled in.
Chief financial officer Tiina Tuomela said the situation ‘has left massive scars’ in the business’s financial results. Uniper has threatened legal action against Russia’s Gazprom, which had been its main supplier, which could see it seek billions in compensation.
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