How Uniper is Transitioning to Sustainable Energy
Despite geopolitical tensions affecting European energy in 2024, Uniper stood its ground, presenting robust financial outcomes.
The year rounded off with an adjusted EBITDA of €2.6bn (US$2.7bn), and a closing economic net cash of €3.4bn (US$3.5bn).
In the report, Uniper’s Supervisory Board says: “In 2024, the Group made significant progress in the implementation of projects to expand green and flexible generation and approved substantial investment decisions.
“Uniper proved that the Group has a balanced and resilient portfolio with a positive operating cash flow and that its transformation strategy is robust.”
Uniper's financial performance in 2024
In its FY24 Presentation, Uniper describes 2024 as a “stellar year”.
Uniper says that its power trading returned to normalised earnings after the settlement of strong trading results from the past.
Its green generation earnings also slightly increased, which Uniper attributes to “increased volumes and higher prices for nuclear power”.
Uniper expects its green generation adjusted EBITDA to increase significantly in 2025.
Dr Jutta Dönges, Chief Financial Officer at Uniper, says: “As expected, results were significantly lower than the exceptional results of 2023.
“Despite the decline, the result for 24 is at a very high level.
“In recent months, I have emphasised that the exceptionally high results of the last two years cannot be repeated.
“In 2024, we have reduced our business risks significantly. We cancelled our gas supply contracts with Gazprom Export and settled long standing legal disputes. We also successfully refinanced our syndicated credit line and increased it.”
Uniper's 2025 plans
As Uniper sails into 2025, it reinforces its renewable energy commitments with several projects nearing completion, including photovoltaic assets expected to go online.
A highlight is the Happurg pumped storage plant set to reconnect to the grid by 2028, receiving a €250m (US$262m) boost in June 2024. “
“We want 80% of our generation capacity to be carbon neutral by 2030, and the Happurg pumped storage plant will be an important strategic part of that,” said Michael Lewis, CEO at Uniper.
“But there is more, Uniper is starting where the energy transition often reaches its limits: in the reliability of power generation. Especially in southern Germany, with its strong industrial demand, there is a lack of predictable power plant capacity.
“With the Happurg pumped-storage plant, we want to make more storage capacity available again.”
It is also rebuilding its global gas sourcing and supply mix and striving to sign new gas contracts alongside entering new partnerships to explore greener gases options and expanding its green power sales.
Currently, the Federal Republic of Germany is Uniper’s majority shareholder with 99.12% after it provided financial support to stabilise the company during the 2022 energy crisis after the start of the Russian war against Ukraine.
The Federal Ministry of Finance has announced that it will review options for reprivatising Uniper, and the company expects to transfer €2.6bn (US$2.7bn) to the Federal Republic of Germany in the first quarter of 2025.
Sustainability in energy
“Climate change remains one of the biggest global challenges today,” the report reads.
“To address this challenge, the aim is to significantly reduce emissions of greenhouse gases.”
The country of Germany has committed to achieving climate neutrality by 2045, five years ahead of the European Union’s plan.
Uniper is ahead of both of these targets, aiming to become carbon neutral by 2040.
Uniper postponed its Scope 1 and 2 climate neutrality targets from 2035 to 2040 in 2024, citing “an increasingly challenging market environment and delays in the development of the regulatory framework, particularly with regard to hydrogen”.
However, it is still focussed on transformation towards becoming a greener power and gas company.
Uniper is already planning to phase out commercial coal-fired power generation by 2029, far ahead of its original assumption of a phase-out by 2038.
It also plans to gradually decarbonise its power plants that currently run on natural gas.
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