Daily Management Review

German Uniper is losing €100M a day due to growing gas prices


In addition to the €9 billion that the firm has already spent, the German energy giant Uniper has asked the state development bank (Kreditanstalt für Wiederaufbau, KfW) to increase its credit line by an additional €4 billion. This information was posted on the organization's website.

Herman via flickr
Herman via flickr
The corporation had spent the final € 2 billion of the loan by August 29. Uniper has asked for an additional €4 billion credit line extension from KfW. According to the article, it will be utilized to give the company short-term cash.

"Due to the systemic nature of the energy markets, the demand for liquidity will increase as long as European energy prices continue to climb. In the German market, Uniper serves as a vital link by consistently supplying gas to several industrial and utility firms. We are compelled to purchase this gas at a premium price on the market since Russia is not honoring its supply agreements, according to Klaus-Dieter Maubach, CEO of Uniper.

The decrease in Russian gas supplies and the corresponding sharp rise in gas and electricity costs have an impact on the current liquidity position.

source: dw.de