Connect with us

Hi, what are you looking for?

News

Germany’s energy bill spirals as Uniper seeks more cash

FRANKFURT/DUESSELDORF – Uniper requested more financial help from the German government on Monday, raising the bill for bailing out the utility group to an eye-watering 19 billion euros ($19 billion), as soaring gas and power prices burn up its cash reserves.

Dramatic price increases in recent days have exacerbated the situation for Germany’s largest importer of Russian gas, prompting it to seek more cash even as the details of last month’s bailout deal with Germany’s government have yet to be hammered out.

Uniper, majority-owned by Finland’s Fortum, said it had already fully drawn down a 9 billion-euro credit line from state lender KfW and requested a further 4 billion euros to reflect the current environment.

Further highlighting the pressure on the firm, leading labor representatives, in a letter to German Economy Minister Robert Habeck dated Aug. 26 and seen by Reuters, asked the government to seek a majority holding in the company.

As part of the rescue deal, Germany has agreed to take a 30% stake.

Uniper shares closed 3% higher while those of Fortum, which earlier on Monday also said it was in talks with the Finnish state on how to safeguard its liquidity needs, ended the day up 5.9%. Read full story

Uniper’s announcement comes less than two days ahead of planned maintenance work that will suspend Russian gas flows to Europe via its main supply pipeline between Aug. 31 and Sept. 2.

The highest-profile corporate victim of Europe’s energy crisis so far, Uniper has been pummeled by cuts in gas flows from Russia, its main supplier, forcing it to cover the shortfall at much higher prices elsewhere.

This is causing cash losses of “well over” 100 million euros a day, Chief Executive Klaus-Dieter Maubach said.

In addition, Uniper has been squeezed by higher security payments to safeguard power sales in light of a sixfold increase in gas prices and a more recent doubling of electricity costs.

“We are working at full speed with the German government on a permanent solution to this emergency, otherwise Uniper will no longer be able to fulfil its system-critical function for Germany and Europe,” Maubach added.

Sources told Reuters last week that KfW was prepared to provide Uniper, which reported a 12.3 billion-euro loss in the first half of 2022, with more credit than previously agreed in last month’s 15 billion-euro bailout deal. Read full story Reuters

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.