National News

German energy supplier faces huge losses amid gas crisis

Bailed-out Uniper blames falling gas flows from Russia for dismal financial performance

German electric utility Uniper suffered a net loss of 12.3 billion euros ($12.5 billion) in the first half of 2022 due to a sharp drop in natural gas supplies from Russia, according to company results released Tuesday.

Uniper has for months played a crucial role in stabilizing Germany’s gas supply – at the cost of billions in losses resulting from the sharp drop in gas supplies from Russiasaid CEO Klaus-Dieter Maubach in the statement, as quoted by Bloomberg.

Natural gas flows from Russia, Germany’s largest gas supplier, have declined in recent months due to technical problems stemming from Ukraine-related sanctions imposed on Moscow. As a result, Uniper was forced to purchase gas on the spot market at much higher prices, to make up for the lost revenue. The company’s financial situation has become so dire that Berlin was forced to intervene last month and partially nationalize the company, acquiring a 30% stake.

According to the company’s statement, it is currently unable to issue an adequate forecast for this year’s earnings.”due to the unstable environment,“but noted that a”substantial negative resultis likely.

READ MORE: Germany partly nationalizes a gas giant

In an effort to tackle the country’s looming energy crisis, Berlin recently urged residents to reduce their consumption and started the process of reviving coal-fired power plants, while imposing an additional tax on gas use. .

For more stories on economics and finance, visit RT’s business section


Back to top button