Following Russia’s interruption of gas supplies, German energy giant Uniper records a loss of £35 billion
As a result of Russia cutting off the gas supply, German energy company Uniper records a loss of £35 billion. It has turned into the Kremlin’s action’s largest corporate casualty to date. Due to the crisis, the business, which operates seven power facilities in the UK, is in the process of being nationalized.
Shares dropped more than 5% in response to the most recent earnings, dropping 93% for the year to date, bringing their worth from £13.3 billion to £960 million. After Russia cut off gas supplies, a German energy firm declared a £35 billion loss, one of the largest in corporate history.
The greatest corporate victim of the Kremlin’s intervention thus far is Uniper, which recently released earnings for the first nine months of the year.
The company is in the process of being nationalized as a result of the crisis. It owns seven power stations in the UK, a gas storage facility, high-pressure gas pipelines, and a facility in Kent that converts imported liquefied natural gas (LNG) back into natural gas.
The greatest corporate victim of the Kremlin’s intervention thus far is Uniper, which recently released earnings for the first nine months of the year.
The value of the shares decreased from £13.3 billion to £960 million as a result of the most recent results, with a drop of more than 5%.
When Russia cut off gas to Europe, Uniper was forced to purchase supplies at significantly higher prices—price increases that weren’t passed on to customers.
When gas prices skyrocketed over the summer, the corporation had to pay for the more expensive supply, which resulted in losses of up to £87 million per day, which by the end of October had decreased to less than £9 million.
With an anticipated loss of £27 billion due to the same problem, that has already cost close to £9 billion.
The incident, according to chief financial officer Tiina Tuomela, “has left significant scars” on the company’s financial performance. The main supplier of Uniper, Russian company Gazprom, has been threatened with legal action, which could result in Uniper seeking billions of dollars in damages.
