• Adjusted EBITDA: Almost EUR 2.2 billion for the first nine months of 2024.

• Adjusted Net Income: Almost EUR 1.3 billion for the first nine months of 2024.

• Net Cash Position: Approximately EUR 5.6 billion at the end of September 2024.

• Operating Cash Flow: EUR 2.6 billion for the first nine months of 2024.

• Provision for Clawback: Approximately EUR 2.5 billion included in the latest balance sheet.

• Depreciation and Amortization: EUR 458 million, roughly EUR 150 million below prior year.

• Economic Interest Result: Positive EUR 86 million, compared to a negative result of about minus EUR 140 million for the first nine months of 2023.

• Operating Tax Rate: 28.1% for the first nine months of 2024.

• Full Year 2024 Outlook: Adjusted EBITDA range between EUR 1.9 billion to EUR 2.4 billion; Adjusted Net Income range between EUR 1.1 billion and EUR 1.5 billion.

• Warning! GuruFocus has detected 2 Warning Sign with WBO:UN02.

Release Date: November 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Uniper SE (WBO:UN02) reported a strong operating performance for the first nine months of 2024, with an adjusted EBITDA of almost EUR2.2 billion and adjusted net income of nearly EUR1.3 billion.

• The company has a solid financial base with a net cash position of approximately EUR5.6 billion at the end of the reporting period.

• Uniper SE is making significant progress in its decarbonization efforts, having decommissioned coal-fired power plants in the UK and Germany, reducing coal generating capacity by 2.9 gigawatts.

• The green generation segment, particularly nuclear, performed better than last year, supported by higher produced volumes and achieved average prices.

• Uniper SE is actively preparing for the transition to hydrogen-ready power plants, aligning with regulatory schemes in the German and British markets.

Negative Points

• The company anticipates a normalization of earnings in the fourth quarter due to weakening market tailwinds and the reversal of positive effects from the nine-month results.

• Uniper SE faces challenges in the timeline for implementing a green hydrogen economy, with potential B2B customers showing caution in committing to significant supply offtake volumes.

• The gas midstream business experienced a significant year-on-year decline in earnings due to lower gains from the procurement of Russian replacement gas volumes.

• The flexible generation segment's earnings were below the previous year's record levels, impacted by non-repeatable high spreads and lower generation volumes for both coal and gas.

• Uniper SE's transformation strategy may progress slower than initially planned due to lower-than-expected demand in the hydrogen economy.