FORTUM CORPORATION, INVESTOR NEWS, 14 JULY 2022 at 20:15 EEST
Fortum is continuing constructive talks with the German government on how to stabilise Uniper both in terms of its financial position and its business risks, and thus to safeguard security of energy supply in Germany. No decisions have been made yet.
“Faced with new geopolitical realities, we have to consider all options that will ensure security of supply and the stability of the European energy markets in the long run. I am very pleased that our main owner, the State of Finland is supporting us in reaching the solution,” says Fortum’s President and CEO Markus Rauramo.
“We are ready and very committed to continue working with relevant parties at the table towards a responsible solution that takes the needs of all stakeholders, including customers and employees into account. In this crisis, brought about by Russia alone, we all have to give something up to safeguard the future,” says Rauramo.
Fortum has stressed that a solution is required swiftly and that it needs to be sustainable also in the long-term. This means it needs to achieve three objectives: Ending the significant loss-making and cash bleeding of Uniper due to the continuing delivery curtailment of Russian gas; securing Uniper’s investment-grade credit rating, which is crucial in the energy business; and taking into account the new realities of unreliable gas flows from Russia.
In the event of prolonged gas curtailment and further gas price hikes, Uniper’s losses will not only continue to mount, but are likely to increase more dramatically. The size of the losses for Uniper is substantially dependent upon cost compensation mechanisms to be put in place by the German government. So the keys to resolve this situation are therefore in the hands of Berlin.
Fortum will update the markets on further developments as necessary.
Vice President, Investor relations and Financial Communications
Investors & analysts:
Ingela Ulfves, Vice President, Investor Relations and Financial Communications, tel. +358 40 515 1531
Fortum News Desk, tel. +358 40 198 2843