FRANKFURT (Dow Jones) — The energy supplier Uniper SE is asking for state aid in view of the sharp rise in gas prices. The German Fortum subsidiary announced that the group had submitted an application to the federal government for stabilization measures. Uniper did not name the amounts of money involved.
It is initially about a distribution of costs in accordance with Section 24 or 26 of the Energy Security Act, it was only said at first. In addition, the proposal provides for additional outside capital by increasing the KfW credit line that has not yet been drawn. Finally, the proposal contains equity components that would lead to a relevant participation by the federal government in Uniper SE. These steps are intended to end Uniper’s current accumulation of significant losses, meet liquidity needs and protect the investment grade credit rating.
Uniper’s major shareholder Fortum is also in talks with the German government to address the negative impact of the current gas supply restrictions on Uniper. Fortum’s proposal provides for a restructuring of Uniper with the goal of establishing a security of supply company owned by the federal government.
Fortum complained in a separate press release that since mid-June Uniper has only been purchasing 40 percent of the contractually guaranteed gas from Russia and has had to buy the rest on the market at great expense.
A decision on Uniper’s future has not yet been made, emphasized Fortum.
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July 08, 2022 08:07 ET (12:07 GMT)
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