Inspired Energy share price slumps more than 18% over possible Gazprom collapse

Energy consultant Inspired Energy shares have slumped 18.2 per cent after warning of a hit to earnings in the event Russian state-owned energy firm Gazprom’s UK arm shuts down.

Over the weekend it was reported that Gazprom UK is facing a possible collapse after the firm’s boss, Alexei Miller, was sanctioned by the UK.

Miller is linked by authorities with Vladimir Putin, prompting businesses such as McDonald’s, Siemens and Biffa to try to cut ties.

London-based Inspired said it could see a £3million impact on revenues if Gazprom Energy does go bust.  

Energy consultant Inspired Energy saw its share price slump 18.2% after warning of a hit to earnings in case Russian state-owned energy firm Gazprom’s UK arm shuts down

Inspired Energy shares are currently down 17.7 per cent to 13.58p. 

If Manchester-based Gazprom UK were to close, Inspired said it would impact 5 per cent of its revenues, as it would lose a swathe of customers with direct and indirect contracts with the Russian group. 

In a bid to reassure shareholders, it added that the company would still comfortably be able to meet its banking covenant and liquidity tests and ‘therefore, continue to operate as a going concern’. 

Mark Dickinson, chief executive of Inspired, said: ‘Whilst the potential impact on the financial performance of the Group should Gazprom cease to trade in the UK would be disappointing, these factors are unfortunately outside of the Group’s control. 

‘We have proactively considered the impact of this event in its entirety and are already focused on the mitigating actions we can take by supporting clients with contract replacement. Inspired remains focused on helping its clients manage their costs and sustainability challenges through this crisis.

‘With regard to the invasion of Ukraine, I am sure many share our shock at the abhorrent actions of the Russian regime and our hope that the war and resulting humanitarian crisis ends soon with a peaceful resolution.’

Founded in 2000, Inspired operates three divisions: Energy Solutions (Assurance and Optimisation), Software Solutions and ESG Solutions, providing expert energy advisory and sustainability services to over 3,400 businesses in the UK and Ireland who typically spend more than £100,000 on energy and water per year. 

The company has said it will release its full-year results on 30 March.

Gazprom does not directly sell Russian gas – it resells gas from the National Grid, which includes supplies from the North Sea and other sources. 

It said on Monday that it was continuing to supply gas to Europe via Ukraine in line with requests from European consumers, with bids staying at 104.7 million cubic metres for March 21, largely unchanged from the weekend. 

Its UK arm supplies more than a fifth of the gas used by UK companies but does not serve households. 

This post first appeared on Dailymail.co.uk