Release Date: November 05, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Uniper SE (WBO:UN02, Financial) reported a strong operating performance for the first nine months of 2024, with an adjusted EBITDA of almost EUR2.2 billion and adjusted net income of nearly EUR1.3 billion.
- The company has a solid financial base with a net cash position of approximately EUR5.6 billion at the end of the reporting period.
- Uniper SE is making significant progress in its decarbonization efforts, having decommissioned coal-fired power plants in the UK and Germany, reducing coal generating capacity by 2.9 gigawatts.
- The green generation segment, particularly nuclear, performed better than last year, supported by higher produced volumes and achieved average prices.
- Uniper SE is actively preparing for the transition to hydrogen-ready power plants, aligning with regulatory schemes in the German and British markets.
Negative Points
- The company anticipates a normalization of earnings in the fourth quarter due to weakening market tailwinds and the reversal of positive effects from the nine-month results.
- Uniper SE faces challenges in the timeline for implementing a green hydrogen economy, with potential B2B customers showing caution in committing to significant supply offtake volumes.
- The gas midstream business experienced a significant year-on-year decline in earnings due to lower gains from the procurement of Russian replacement gas volumes.
- The flexible generation segment's earnings were below the previous year's record levels, impacted by non-repeatable high spreads and lower generation volumes for both coal and gas.
- Uniper SE's transformation strategy may progress slower than initially planned due to lower-than-expected demand in the hydrogen economy.
Q & A Highlights
Q: Can you provide an update on the progress of asset disposals required by the EU, particularly regarding Datteln 4 and other assets?
A: We have formally initiated the disposal process for Datteln 4 and our district heating business, inviting potential buyers to submit non-binding indications of interest. We cannot comment on the level of interest at this stage. The sale of Hungarian assets is expected to close soon, and other disposals like Opal are on track to meet the EU's timeline.
Q: Is Uniper interested in building new nuclear reactors in Sweden, given the recent discussions and consultations?
A: Nuclear in Sweden remains core to our strategy, but we do not plan to invest in new builds. We are, however, considering extending the lifetime of existing reactors.
Q: With the potential political changes in Germany, is the EUR2.5 billion provision for repayment to the government reliable, or could it change?
A: The EUR2.5 billion provision is based on an agreement between the German government and the European Commission and is not subject to political changes. The exact amount will be finalized at the end of the year.
Q: How might a change in government affect Uniper's EUR8 billion transformation strategy, especially with the CDU's recent plans?
A: Our transformation strategy remains intact, though we may adjust the pace due to slower-than-expected demand for hydrogen. Our investment decisions are based on project viability and are not influenced by political changes.
Q: Regarding ESG concerns and carbon emissions, is there a possibility to accelerate the decommissioning of coal assets like Scholven and Maasvlakte?
A: We are bound by regulatory requirements for Scholven, which is in reserve. For Maasvlakte, the plan is to exit coal by 2029, and there are no current plans to accelerate this timeline.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
