Uniper Reports Profit in First Nine Months of 2020

Shares in Germany's Uniper rise as the utility company shows positive financial performance.

Uniper, the bailed-out utility company, has reported a profit for the first nine months of the year. The company's net profit reached 9.77 billion euros ($10.37 billion), a significant improvement compared to the loss of EUR40.3 billion in the same period last year. The impressive turnaround is attributed to declining commodity prices, which have had a positive impact on future provisions.

Positive Outlook and Extraordinary Results

Uniper's stock surged by 6.4% following the announcement, reaching EUR4.71 at 0906 GMT. Chief Financial Officer Jutta Doenges expressed enthusiasm about the exceptional results, stating that such high earnings figures may not be seen in the coming years, but the company remains optimistic about the future. She emphasized Uniper's solid financial position and promising prospects.

Lower Prices and Release of Provisions Drive Performance

Uniper's improved performance can be attributed to various factors. The utility company benefited from lower prices, which led to a change in the value of derivatives used for hedging purposes. Additionally, provisions for anticipated future losses in the gas portfolio were released, contributing to the positive financial results.

Path to Government Exit

Uniper has been taking strategic steps to exit government ownership. One of these measures includes a planned capital reduction aimed at eliminating the accumulated loss from the previous year and reinstating dividend payments.