MOSCOW (Pakistan Point News / Sputnik - 03rd November, 2022) Germany's largest gas importer Uniper said on Thursday that Russian energy giant Gazprom had completely cut off gas supplies to the company in late August.
"Since June 14, 2022, Gazprom has reduced Russian gas deliveries and is thus in breach of its contractual obligations. After a period of supply interruptions varying in extent, deliveries of Russian gas to Uniper have been fully discontinued by Gazprom since the end of August 2022," a report read.
The German company also clarified that it was forced to purchase gas at significantly higher market prices in order to continue to provide its customers with reliable supplies, fulfill signed contracts, and replenish gas storage facilities in time for the coming winter.
According to Uniper, its net loss attributable to shareholders increased by 950% year-on-year in the first three quarters of 2022 and amounted to 40.374 billion Euros ($39.357 billion). This sum consists of around 10 billion euros of realized costs for replacement volumes, and roughly 31 billion euros of anticipated future losses from valuation effects on derivatives and provision build-ups associated with reduced Russian gas supplies as of September 30, 2022, the report read.
Meanwhile, the company's revenue for this period increased by 370% to 213.303 billion euros. Adjusted earnings before interest and taxes were -4.755 billion euros compared to positive 614 million euros in 2021. Earnings per share were -110.14 euros compared to -13.2 euros in 2021.
In the third quarter of 2022, Uniper's net loss increased by 5.9 times and amounted to 27.956 billion euros, while revenue jumped 2.5 times year-on-year and amounted to 94.016 billion euros. Earnings per share were -76.41 euros compared to -13.01 euros in 2021.
On June 14, Russia's Gazprom announced the reduction in its gas supplies via the Nord Stream 1 pipeline, which played a key role in the transit of Russian gas to Europe, including Germany. The Russian energy giant explained the introduction of the measure by the development of the overhaul cycle of gas compressor units (GCU), technical malfunctions of engines and delays in the operation of Germany's Siemens corporation, which failed to return GCUs from repair from a Canadian plant due to Ottawa's sanctions against Russia.
On September 2, Gazprom shut down the Nord Stream pipeline for an indefinite period, citing a malfunction of the only remaining working engine and a warning from the Russian technical watchdog.
On September 26, leaks of fuel were registered on the Nord Stream 1 and Nord Stream 2 pipelines. The causes of the incidents have not yet been established. The operator, Nord Stream AG, reported that the damage was unprecedented and it was impossible to estimate the time frame for repair work. The Russian Prosecutor General's Office is investigating the pipeline incidents as acts of international terrorism. The European Union has also launched probe into the incidents.
