German energy giant Uniper clocks up a £35bn loss after Russia chokes off gas supplies

A German energy giant has reported losses of £35 billion – one of the largest in company history – after Russia cut gas supplies.

Uniper, which yesterday released its results for the first nine months of the year, has become the largest corporate casualty of the Kremlin’s action so far.

The group, which has seven power stations in the UK, as well as a gas storage facility, high-pressure gas pipelines and an operation in Kent to convert imported liquefied natural gas (LNG) back into natural gas, is being nationalized as a result of the crisis.

The stock fell more than 5 per cent from the latest results and fell 93 per cent for the year so far, taking its value from £13.3 billion to £960 million.

When Russia cut off gas to Europe, Uniper had to source supplies at much higher prices, which were not passed on to consumers.

By paying for the more expensive supplies, the company suffered losses of up to £87 million a day as gas prices soared in the summer and fell to less than £9 million a day in late October as prices cooled.

That has brought in nearly £9 billion so far, with an expected £27 billion in future losses related to the same problem.

Chief financial officer Tiina Tuomela said the situation has “left major scars” on the company’s financial results. Uniper has threatened legal action against Russia’s Gazprom, which was its main supplier, and it could seek billions in damages.