Uniper’s 2022 results
Uniper recorded adjusted EBIT of -€10.9 billion in the 2022 financial year. Adjusted EBIT in the prior year amounted to €0.95 billion. Both numbers exclude Unipro, which is reported as Discontinued Operations and was deconsolidated as of year-end 2022.
Adjusted EBIT at the Global Commodities segment declined significantly year-on-year. Following very good earnings in the prior year, the decline is mainly attributable to the gas business, which is being adversely affected by higher replacement procurement costs due to the curtailment of Russian gas volumes from June 14, 2022. At the end of August 2022, this negative impact was further exacerbated by the complete freezing of the gas supply. In order to fulfill its customer contracts and ensure security of supply, Uniper has been forced to buy gas, primarily on the spot market, at high prices. The adjusted EBIT contribution from the other parts of the gas business was positive due to portfolio optimization.
The interruption of LNG deliveries from Freeport LNG terminal in the United States due to fire damage to its infrastructure adversely affected the international portfolio, as did the non-recurrence of extraordinary optimization income recorded in the prior year due to extremely cold weather.
The European Generation segment’s adjusted EBIT was significantly above the prior-year level. The sharp increase is particularly attributable to positive earnings streams from margins in the fossil-fueled power generation business due to significantly higher spreads. Higher delivery and procurement costs for hard coal as part of Uniper’s transitional strategy to diversify its coal procurement negatively affected adjusted EBIT relative to the prior year.
The disposal of Schkopau power station in the third quarter of 2021, lower income from the U.K. capacity market, and higher depreciation expense, particularly at the fossil-fueled generation fleet, adversely impacted adjusted EBIT. The nuclear energy business in Sweden was mainly impacted by higher adjusted EBIT-relevant additions to the provision for asset retirement obligations due to inflation, as well as unplanned unavailabilities.
Adjusted net income, which largely tracks adjusted EBIT, stood at -€7.4 billion after twelve months, significantly below the prior-year figure of €0.75 billion, both figures excluding Unipro.
The IFRS net loss at year-end 2022 of €19.1 billion contains about €13.2 billion of realized additional cost for procuring replacement gas and about €5.9 billion of future losses that are anticipated because of future procurement costs to replace undelivered Russian gas. Uniper had previously reported a net loss totaling roughly €40 billion for the first nine months of the 2022 financial year resulting from already realized losses and anticipated future losses relating to the costs of procuring replacement gas based on significantly higher market prices at that time.
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