FRANKFURT/DUESSELDORF, Feb 28 (Reuters) - Bailed-out German utility Uniper expects a significant fall in profit this year, it said on Wednesday, blaming lower wholesale energy prices that have also clouded the outlook for rivals across Europe.
The company forecasts adjusted net profit of between 0.7 billion and 1.1 billion euros ($758 million to $1.2 billion) this year. Last year it made a record 4.43 billion euros, helped by one-off gains.
The outlook reflects a normalisation of wholesale power and gas prices that had risen sharply when Europe severed most energy ties with Russia.
RWE and France's EDF have also warned of lower 2024 profit in recent weeks.
Uniper was rescued by the German government at the height of Europe's energy crisis in 2022, resulting in a 13.5 billion euro bailout, after Moscow's halt to gas supplies via the Nord Stream pipeline forced the company to buy replacement volumes at sky-high prices.
The company said on Wednesday that the disposal of its North American power business - part of asset sales demanded by Brussels in return for approving the bailout - had been initiated and was at an advanced stage.
"Uniper finished 2023 with exceptionally good results. That gives us financial flexibility to systematically implement our strategy," said finance chief Jutta Doenges, referring to the group's 8 billion euro plan to expand its renewables portfolio and cut CO2 emissions.
Sources this month told Reuters that the German Government, which owns more than 99% of Uniper, was considering releasing a 20-30% stake in a listing next year as a first step to reversing the bailout.
Uniper, which has set aside a 2.2 billion euro provision to start paying back the state money, said its adjusted core profit would decline to between 1.5 billion and 2 billion euros this year, down from 7.16 billion euros in 2023.
($1 = 0.9235 euros)
Reporting by Christoph Steitz and Tom Kaeckenhoff Editing by Rachel More, Kim Coghill and David Goodman
Source: Reuters