Uniper Prepares for Re-privatisation with Increased Provisions

Uniper has raised its provisions to repay $3.8 billion in state aid it received during Europe's energy crisis. The move sets the stage for the possibility of re-privatisation next year. Uniper's improvements follow a legal win against Gazprom and better-than-expected earnings. Berlin is preparing to sell a minority stake by spring 2025.

Uniper boosted provisions on Thursday, setting the stage to repay $3.8 billion in state aid received during Europe's energy crisis, signaling that re-privatisation of Germany's largest gas importer could start next year. Bailed out by Berlin in 2022, Uniper increased its provisions to 3.4 billion euros from 2.2 billion following operating improvements and an arbitration win against Gazprom.

The payment to Berlin, estimated around 3.5 billion euros, is projected for early next year, though it could change based on 2024 results. Uniper may further increase provisions and is reviewing legal options to seize payments from European Gazprom customers as permitted by the arbitration ruling.

Last week, Uniper raised its earnings guidance, bolstered by a strong H1 performance. Chief Executive Michael Lewis highlighted the company's major turnaround after almost collapsing two years ago, marking 2024 as a pivotal year. Berlin, owning 99.12% of Uniper, is planning a minority stake sale by spring 2025, potentially followed by additional share sales.

Despite progress, thinly-traded shares fell 4.4% on Thursday. Finance Chief Jutta Doenges emphasized ongoing efforts to meet capital-market requirements. Uniper has been entangled in legal disputes with Gazprom since the Russian firm cut supplies, leading Berlin to rescue Uniper with a 13.5 billion euro lifeline. A recent Russian court decision mandated Uniper to pay over 14 billion euros in damages, entitling Gazprom to seize Uniper's assets.

Uniper, owning a majority stake in Russia’s Unipro, stated its readiness to defend against asset seizures by Gazprom. The firm clarified potential financial implications or specific assets at risk, indicating that seizures could occur in regions friendly with Moscow.