Uniper Sticks with 2020 Earnings Outlook

Germany's Uniper said on November 10 it was still on track to generate €800mn ($947mn) in adjusted earnings before interest and tax (Ebit) in the full year, after doubling its income in the first nine months.

Adjusted Ebitd climbed to €405mn in January through September, up from €203mn a year earlier, while cash flow surged to €833mn from negative €277mn a year before.  

Uniper attributed the higher numbers to strong gas business results and the resumption of the UK capacity market. The UK capacity market pays utilities for making capacity available regardless of whether it is used. The European Commission permitted the UK to continue using the system in October last year after concluding that it did not breach EU state aid rules. 

Uniper's hydroelectric and nuclear power stations also delivered increased earnings this year, with a slight dip in output more than compensated by higher prices for nuclear energy. The company's fossil fuel business also earned more. 

"“Uniper is making good progress operationally and financially in a challenging environment," CFO Sascha Bibert said. "Our nine-month earnings significantly surpassed the prior-year figure, and we expected a weak third quarter. We remain on course to achieve our full-year targets."

Uniper is striving to make its generation operations carbon neutral by 2035 and exit coal power on the continent by 2038. It is also looking to decarbonise its gas power stations, in part through developing hydrogen.