Release Date: May 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Uniper SE (UNPRF, Financial) confirmed its full-year 2025 outlook for adjusted EBITDA in the range of EUR900 million to EUR1.3 billion and adjusted net income between EUR250 million and EUR550 million.
- The company maintains a strong financial position with an economic net cash position of EUR2.6 billion at the end of March 2025.
- Uniper SE (UNPRF) successfully signed new LNG long-term supply contracts, enhancing its strategic development and diversification of its gas portfolio.
- The UK power plant portfolio remains a significant earnings driver, with successful participation in the T-4 capacity auction, securing future earnings contributions.
- Uniper SE (UNPRF) is well-positioned to contribute to Germany's energy transformation, with plans to build up to 20 gigawatts of new gas-fired power plants by 2030, aligning with the new capacity market scheme.
Negative Points
- Uniper SE (UNPRF) reported a significant decline in earnings for Q1 2025, with an adjusted EBITDA of minus EUR139 million and an adjusted net income of minus EUR143 million.
- The Gas Midstream business faced challenges due to high-priced inventory gas and past optimization activities, negatively impacting margins.
- The Greener Commodities segment posted an operating loss of EUR492 million in Q1 2025, primarily due to negative effects in the gas portfolio and the lapse of gas curtailment gains.
- The Flexible Generation business experienced a year-on-year decline in adjusted EBITDA due to less favorable commodity price developments and weaker power generation hedging.
- Uniper SE (UNPRF) faced a negative operating cash flow of minus EUR1.1 billion in Q1 2025, driven by payment obligations towards the Federal Republic of Germany.
Q & A Highlights
Q: Can you clarify the 13 brownfield sites mentioned in your CapEx plans? Are they the same as the 13 gas plants depicted? Also, could you update us on your CapEx plan, initially set at EUR8 billion through 2030?
A: The 13 sites mentioned are not exclusively gas sites, but it coincidentally aligns with the 13 gas-fired power plants. Regarding CapEx, the EUR8 billion plan remains unchanged, though its timeline has shifted due to delays in FlexGen and hydrogen market developments. We are reviewing our strategy in light of the German government's new 20-gigawatt target by 2030, which may impact CapEx allocation.
Q: Regarding the potential 2 gigawatt target in Germany's Flexible Generation capacity auction, what would increase your confidence to expand your market share? Also, any thoughts on a potential re-IPO or portfolio adjustments?
A: We will only invest if it is financially viable. We await details on the capacity market and financial conditions from the German government. Our Swedish portfolio remains core to our strategy, and we have no plans to adjust our portfolio or consider a re-IPO at this time.
Q: With rising energy costs and the German government's focus on economic recovery, how do you see the balance between reducing costs for industry and users while facing increasing sector costs?
A: There is a recognized capacity gap, and we welcome the government's focus on security of supply. They are open to various technologies, which could help manage costs. However, it is a complex issue, and we await further clarity from the government.
Q: Could you provide more details on the potential cost of investing in 2 gigawatts of gas-fired generation, considering hydrogen readiness?
A: We are not commenting on specific costs at this point, but traditionally, it would be less than EUR2 billion, though hydrogen readiness could increase this.
Q: What are your expectations for the regulation to increase your market share in Germany's Flexible Generation capacity auction?
A: We need clarity on the auction details and financial conditions. We are prepared with the necessary sites, capabilities, and expertise, and we look forward to more information from the German government.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
