Uniper issued a profit warning and is discussing “stabilization measures” with German officials after Russia’s Gazprom delivered only 40% of the gas it had ordered. The German group said it expects its profits to be significantly lower than in previous years as a result. Its shares fell by almost 20% in response. Russia has been cutting off gas supplies to Western Europe since the start of the war in Ukraine. Power companies on the continent have rushed to fill their gas storage facilities before winter, fearing supplies would be cut off altogether. Germany last week launched the second phase of a national gas emergency plan that could lead to a coup if shortages continue. Uniper said government support could include “equity investments” and an extension of the € 2 billion credit facility with a state-owned bank agreed earlier this year as the energy crisis worsened. John Musk, an analyst at RBC Europe, said other European utility companies with exposure to gas supplies – including E.ON, RWE, Enel and Engie – could also be adversely affected. Russ Mold, investment director at AJ Bell, said:[Uniper] was forced to buy energy in the market after Gazprom delivered less than half of its contractually committed gas volumes in the last fortnight. “Uniper is pickled as it can not yet pass on these higher costs, so there is significant financial pressure on the company.” Subscribe to the Business Email daily email or follow the Guardian Business on Twitter at @BusinessDesk Shares of Uniper, worth almost 5 billion euros, have fallen by 67% so far this year. Uniper owns the Ratcliffe-on-Soar coal-fired power plant and a number of gas plants in the United Kingdom. Britain has access to significant quantities of natural gas from the North Sea and Norway. This week it emerged that National Grid had taken emergency measures, including supply cuts to Europe. The government is in talks to extend the life of one of the units at Ratcliffe-on-Soar to boost energy reserves during the winter. Separately on Thursday, Gazprom canceled its dividend for the first time since 1998. The state-backed company said its investors had blocked its plans for a large payment for 2021 at its annual meeting. The Russian state owns 38% of the energy supplier, with other state-owned companies holding an additional 12%. The dividend decision led to a 25% drop in its shares.
