German energy giant Uniper has announced a significant boost in its earnings outlook for 2024, driven by strong first-half financial results. The company, which received a government bailout at the start of the European energy crisis in 2022, now anticipates even stronger results than previously predicted.
Based on preliminary and unaudited figures, Uniper expects its adjusted core earnings (EBITDA) to reach between â¬1.9 billion and â¬2.4 billion for the full year 2024. This represents a notable increase from the previously announced guidance of â¬1.5 billion to â¬2 billion.
"Uniper now expects improved earnings performance for the full year 2024 and adjusts its financial outlook accordingly," the company stated in a brief announcement. The detailed results for the first six months of 2024 will be published on 8th August.
Germany nationalized Uniper in 2022 to prevent its collapse amid skyrocketing gas prices and a lack of Russian supply following the Ukraine invasion and EU sanctions. The total cost of the nationalization reached â¬50 billion.
To replace lost Russian gas supplies, European buyers turned to US liquefied natural gas (LNG), with exports from the US Gulf Coast reaching record highs. Uniper has been particularly active in the spot market, as uncertainty remains about long-term gas demand in Europe.
However, Uniper managed to turn around its finances as early as 2023, reporting an adjusted net income of â¬4.432 billion, a stark contrast to the massive â¬7.4 billion loss experienced in 2022. This turnaround was largely attributed to successful hedging transactions for coal- and gas-fired power plants, as well as its midstream gas business.
The company's success in hedging transactions to cover its open gas supply obligations also contributed significantly to the 2023 earnings.
This positive outlook for Uniper reflects the changing landscape of the European energy market and the company's ability to adapt to these new conditions.