Losing Billions

Uniper Suffers Before Listing

Uniper flag logo source Reuters 61668153
Uniper will list in September and be spun off from its parent, German utility E.ON.
  • Why it matters

    Why it matters

    Uniper’s separation from utility E.ON will mark another milestone of Germany’s transition to renewable energy sources, which has decimated utilities’ profits.

  • Facts

    Facts

    • Uniper, a subsidiary responsible for conventional power, began operating at the start of this year and will be spun off in September, leaving parent company E.ON to focus on renewables.
    • Germany aims to phase out all nuclear energy in the country by 2022 and draw at least 80 percent of energy from renewables by 2050.
    • Subsidized renewable power has proved a headache for conventional electricity producers as wholesale price falls wrecked their profitability.
  • Audio

    Audio

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It was an unpromising start. Uniper, a new coal and gas-powered electricity producer spun off by German utility E.ON, presented its first official half-year figures on Monday, one month before it plans to go public.

Chief Executive Klaus Schäfer reported a net loss of €3.9 billion, or $4.4 billion, due to writedowns on its power stations and gas-storage facilities. The loss was widely expected after E.ON, which is spinning off Uniper to cope with Germany’s push into renewable energy, warned of the impairments two weeks ago.

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