Uniper chief positive ahead of flotation

The chief executive of E.ON spin off, Uniper, has been working hard to persuade investors as to the potential of the company.

Klaus Schäfer told the Financial Times that while the company is set for an underwhelming debut on the German stock exchange next month, the new entity needs to be analysed over a longer time frame.

“You can’t evaluate Uniper’s stock market success based on a single day,” he said. “With a spin-off, you typically look back after a year.”
Klaus Schafer
Uniper’s existence ame about as a response by E.ON to the German energy transition to renewables. The move to green power has been very damaging to the company

Uniper’s demerger from its parent company, the utility E.ON, is the most dramatic corporate responseE.ON’s market capitalisation has collapsed from its most recent peak of €105.7bn in January 2008 to €18bn.

E.ON itself now takes care of renewables and energy distribution while its fossil fuel power plants and energy trading unit fall under the responsibility of Uniper.

Schäfer maintains that Uniper’s fleet isa lot more diverse, both by country and technology, than people think: its hydropower stations in Germany and Sweden are, he says, some of the “crown jewels of the energy market”.

It also has a “very strong physical commodities business”, which contributed a quarter of earnings last year and includes interests in gas pipelines, gas storage facilities and a huge gasfield in Siberia. Uniper also owns Russia’s third largest private power generation company.

Schäfer also says it makes more sense to look at Uniper’s operational performance than its net income, which has been affected by repeated writedowns of its power generation assets. There, the picture is not so bleak: its adjusted earnings for the first half of this year were €1.5bn, up 50 per cent on the previous year.



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