Uniper gas firm posts staggering losses - a depleting financial reserve
Uniper, the hard-hit energy giant, has dumped a gloomy report on us: an eyewatering €40 billion loss in the first nine months. Ouch! Now, it's trading lower than its sad sack stock market best, with a measly €1 billion valuation.
This financial car crash includes a ten-billion euro hit on gas replacement quantities, and another €31 billion from expected valuation effects and Russian gas cut-related provisions. Yikes!
Why's Uniper in This Mess?
You guessed it – Russia's no longer providing the cheap gas Uniper was swimming in, and the gas wholesaler – a vital player in Germany's natural gas supply – now has to buy pricier joe on the market. CFO Tiina Tuomela explains the pain:
Gearing Up for More Losses
Implementing the stabilization package is Uniper's top priority. They've reportedly scored €18 billion worth of credit lines from the KfW Bank, with €14 billion already withdrawn by October end.
But brace yourself: Uniper anticipates even more losses in the remaining months, with a clear earnings forecast still elusive.
The German Government to the Rescue ... Sort Of
The German government's about to own a whopping 99% of Uniper, with a €8 billion capital increase planned. The catch? Existing shareholders get no say; the new shares will be issued without their subscription rights. And the German government won't squeeze out old shareholders – yet another hit for them.
The government's exit strategy? Similar to its Lufthansa approach, as demanded by Wolfgang Steiger, General Secretary of the Council of Economic Experts. An extraordinary general meeting is scheduled for the second half of December to finalize the process.
Stock Slide: From Bad to Worse
The anticipated dilution for existing shareholders promises further stock torture, incentivizing more investors to sell their stakes to cut potential losses. Investors shouldn't expect much in terms of smart buys for Uniper – barring brief, mindless speculation frenzies.
On Thursday, the Uniper share dipped by over three percent. It's hit a (for now) all-time low of 2.55 euros in September. With a depleted market cap of only 1.1 billion euros, this former MDAX company is hanging on by a thread.
UBS and BOERSE ONLINE: The Doom Loop
Swiss bank UBS anticipates even lower prices for Uniper in the coming months. Today, UBS set a new price target at 2.00 euros. Unsurprisingly, their rating remains a blunt "Sell." BOERSE ONLINE agrees, stating that abortive investment opportunities are likely for Uniper until further notice.
- Uniper's Chief Financial Officer Tiina Tuomela identified buying gas at higher prices as the primary cause of the substantial losses experienced by the energy giant.
- Despite securing €18 billion worth of credit lines from the KfW Bank, Uniper anticipates continued losses in the remaining months, making a clear earnings forecast elusive.
- The German government's plans to own 99% of Uniper, through an €8 billion capital increase, will not grant existing shareholders any say in the matter, further adding to their financial losses.
4.Analysts at Swiss bank UBS and BOERSE ONLINE predict that Uniper's stock prices could descend even further, with UBS setting a new price target at 2.00 euros and maintaining a "Sell" rating, while BOERSE ONLINE considers investment opportunities in Uniper to be abortive until further notice.
