BAKU, Azerbaijan, Nov.12
By Leman Zeynalova – Trend:
Economic net debt of Germany-based Uniper company fell significantly, from €3,050 million at year-end 2020 to €1,390 million in the first nine months of 2021, Trend reports with reference to the company.
The main reason was an increase in operating cash flow due to changes in working capital at the gas business and from increased non-cash additions to provisions for emission rights and onerous contracts. In addition, lower provisions for pensions and similar obligations reduced the economic net debt further due to the increase in pension-discount rates compared with 2020.
Based on Uniper’s anticipated positive nine-month performance and its expectations for the remainder of the financial year, it raised its outlook range for adjusted EBIT for the 2021 financial year from formerly €800 to €1,050 million to €1,050 to €1,300 million. It also increased the range for adjusted net income from €650 to €850 million to €850 to €1,050 million.
Adjusted net income, which largely tracks adjusted EBIT, totaled €487 million at the nine-month mark, thereby surpassing the prior-year figure of €308 million significantly.
The reported IFRS net income shows a loss of €-4,768 million in the first nine months. Main reason is a IFRS-related inconsistency in the fair value measurement of hedging transactions and hedged items. Whereas the derivatives are subject to “mark-to-market” (i.e., fair value) accounting, the corresponding appreciation of the hedged underlying assets is initially limited to their cost, and additional gains may not be recognized until they are realized. This measurement inconsistency is neutralized accordingly within the “adjusted EBIT” and “adjusted net income” measures, in order to better reflect Uniper’s operating performance.
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