I listened to the Uniper ($UN01 ) analyst and investor conference on the 2024 annual results and would like to share my impressions with you.
Michael Lewis, the CEO, emphasized that 2024 was the first full year of the new Uniper after the strategic review in August 2023. Despite challenges such as pressure on European competitiveness and political uncertainty in Germany, he praised the performance of his colleagues.
Uniper focused in 2024 on Investments in growth areaswith capital expenditure increasing by 21% compared to the previous year. One major project is the revitalization of the Happurg pumped storage power plant with an investment of around 250 million euros. In addition, financial decisions were made for solar PV projects with a volume of around 140 million euros and a capacity of over 200 megawatts.
At the same time necessary disposals to fulfill the requirements of the EU Commission. The completion of the sale of the Gonyu gas-fired power plant in Hungary and the North American electricity portfolio was announced at the beginning of the year. Uniper is confident that all disposals will be completed by the end of 2026.
Another important point was the harmonization of the Group-wide climate targets by 2040with the interim target of a 55% CO2 reduction for Scope 1 and 2 emissions by 2030 remaining unchanged. Uniper is well on the way to achieving the commercial coal phase-out by 2029 to achieve this. Around 3 gigawatts of large coal-fired power plants were decommissioned in 2024.
After Uniper was awarded more than €13 billion in damages for undelivered gas volumes from Gazprom Export since mid-2022, the gas supply contracts were formally terminated in the first half of 2024. The repayment claims of the Federal Republic of Germany amount to around 2.6 billion euros and are to be settled in the first quarter of the current year. The rating agencies S&P Global and Scope confirmed the BBB rating with a stable outlook.
The results for 2024 were very strongwith both adjusted EBITDA of EUR 2.6 billion and adjusted net income of EUR 1.6 billion in line with expectations. All three segments, Green Generation, Flexible Generation and Greener Commodities, contributed to this result. At the end of the 2024 financial year, Uniper had a comfortable economic net cash position of EUR3.4 billion, an increase of 11% compared to the previous year.
The market environment remains dynamic and the results of 2024 are unlikely to be repeated. Economic development in Europe is weak and international pressure on the European economy is growing. The European gas markets are nervous, especially after the end of gas transit through Ukraine.
In the medium term, however demand for electricity and gas is expected to recover is expected to recover in the medium term, particularly as a result of the electrification of energy consumption. As flexible generation capacities are needed, Uniper sees an opportunity here. Positive developments are expected for Germany and the UK, which could trigger investments in new, later decarbonized gas-fired power plants.
For 2025, an adjusted EBITDA of between €900 million and €1.3 billion and and an adjusted Group net profit of between 250 million and 550 million euros is expected. Uniper plans to invest around EUR 1 billion, around half of which is earmarked for growth. The focus is on the expansion of renewable energies and the development of new gas-fired power plants in Germany and the UK.
The planned investments for 2025 are divided between Green Generation (50 %), Flexible Generation (30 %) and Greener Commodities (20 %). In the area of renewable energies, over 200 megawatts of new photovoltaic capacity will be built, with additional investment decisions for around 400 megawatts being sought. In Greener Commodities, the focus is on rebuilding the trading platform with new gas sources and expanding the customer base.
Various topics were addressed in the subsequent Q&A session:
Anna Webb (UBS) asked about the one-off effects in the outlook for 2025 and the impact of the German elections. Michael Lewis replied that the main challenge for the new government is the need to create new flexible baseload capacity. Jutta Donges explained that 2025 is a reflection of the normalization of market conditions and the pattern of results.
Louis Boujard (ODDO BHF) asked about the dividend and the volatility in the Greener Commodities business19 Michael Lewis explained that the payment of a dividend is currently prevented by German law. Jutta Donges emphasized that Uniper is restructuring its gas and LNG portfolio in order to achieve more stable and predictable earnings.
Overall, the conference was very informative and gave a good insight into Uniper's current situation and future plans.
