Uniper’s nine-month performance gives it a confident outlook for full-year 2024. Uniper generated adjusted EBITDA of €2,176 million in the first nine months of 2024. As anticipated, this was significantly below the exceptionally good prior-year figure of €6,086 million, which reflected successful optimization transactions relating to gas replacement procurement in conjunction with undelivered gas from Russia.
In August Uniper adjusted its outlook for the 2024 financial year to adjusted EBITDA of €1.9 to €2.4 billion and adjusted net income of €1.1 to €1.5 billion. It continues to expect these figures.
The Green Generation segment’s adjusted EBITDA of €738 million surpassed the prior-year figure of €590 million. The increase in earnings was mainly due to the segment’s nuclear business in Sweden, which benefited from a price-driven earnings increase and higher electricity output.
The Flexible Generation segment recorded an adjusted EBITDA of €1,056 million, which was below the prior-year figure of €1,595 million. This primarily reflected a decline in positive earnings on successful hedging transactions on the fossil-fuel margin due to the general decline in price levels. A year-on-year reduction in expenses on the measurement of provisions for carbon allowances amid declining prices for such allowances had a temporary positive effect. Expenses on the measurement of provisions are offset by hedging transactions that will not be settled until the fourth quarter of 2024.
Uniper’s direct Scope 1 carbon emissions totaled 10.9 million metric tons in the first nine months of 2024 (prior-year period: 13.3 million metric tons). This more than 18% decline was primarily due to lower electricity output at some of the company’s coal-fired power plants in Germany.
The Greener Commodities segment’s adjusted EBITDA of €699 million was below the prior-year level (€3,971 million). The gas business was unable to repeat its exceptionally high results of the prior-year period. Last year this segment benefited from significantly lower costs on replacement procurement for undelivered Russian gas as well as unusually high trading results. An altered market environment likewise prevented the electricity-trading business from repeating its exceptionally positive prior-year results.
As anticipated, Uniper’s nine-month adjusted net income of €1,284 million was below the prior-year figure of €3,744 million.
Payments to the Federal Republic of Germany
On June 30, 2024, Uniper recorded a provision of roughly €540 million for the transfer of proceeds from realized claims for damages against Gazprom Export. In late September Uniper utilized a portion of this provision and paid €530 million to the Federal Republic of Germany. As part of the stabilization measures, Uniper had made a commitment to the Federal Republic of Germany to pass on to it any compensation payments it receives, less legal costs and taxes, for curtailed gas supplies.
At the end of last year Uniper already recorded a provision of about €2.2 billion for an anticipated payment obligation to the Federal Republic of Germany in conjunction with aid granted in 2022. The company reviewed the amount of the provision at September 30, 2024, and on this basis assessed it at just under €2.5 billion. It will calculate the precise amount of the payment obligation on the basis of its 2024 financial figures. The funds will likely be transferred to the Federal Republic of Germany at the beginning of 2025.
Both payments should be regarded as repayments to German taxpayers. The federal government stabilized Uniper’s finances during the gas crisis following Russia’s attack on Ukraine. The Federal Republic of Germany is expected to obtain additional proceeds, primarily from the sale of its Uniper stock. Uniper welcomes the Federal Ministry of Finance’s announcement that it will examine opportunities to reprivatize Uniper and in particular to review a sale on the capital market as its main option.
Coal-exit progress
Uniper’s plan to phase out coal by 2029 is making great progress. It decommissioned Ratcliffe-on-Soar coal-fired power plant in the United Kingdom and Heyden 4 power plant in Petershagen near Minden in Germany on September 30. Uniper intends to sell Datteln 4 coal-fired power plant in North Rhine-Westphalia, Germany, in accordance with the European Commission’s state aid approval requirements. The sales process started at the end of September.
The coal exit is essential for Uniper to achieve its carbon targets. Uniper aims to be fully carbon-neutral (Scope 1, 2, and 3) by 2040 and to reduce its (Scope 1 and 2) emissions by at least 55% by 2030 relative to 2019. Altered market conditions will postpone Uniper’s Scope 1 and Scope 2 neutrality target from 2035 to 2040. Uniper remains firmly committed to decarbonizing its portfolio and doing all it can to propel the energy transition.
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Jutta Dönges, CFO Uniper
Uniper’s nine-month operating performance was stable in an increasingly normalized market environment. Today we can therefore reaffirm our outlook for the 2024 financial year that we revised upward in August. Overall, this is a gratifying performance – even if it we won’t be able to repeat this level of earnings in the years ahead. We’re making progress in implementing our strategy to become a greener company. Just under 50% of the electricity we’ve produced in 2024 is zero carbon and we’re systematically implementing our coal phaseout.
Jutta Dönges, CFO Uniper
