Helsinki, Aug. 25, (dpa/GNA) – State-owned Finnish energy company Fortum reported a net loss of €7.4 billion ($7.4 billion) for the second quarter of 2022 on Thursday, pointing to problems with its German subsidiary Uniper and the ongoing gas crisis in Europe.
“During the second quarter of 2022, Russia escalated its brutal war against Ukraine and launched an outright energy war against the European Union,” Fortum chief executive Markus Rauramo said.
“Due to Russia’s gas curtailments, fears for security of supply and affordability of energy on the continent increased substantially. As a result, European gas and power prices rose dramatically and reached record-high levels in volatile markets,” Rauramo added.
Dusseldorf-based Uniper, one of the backers of the suspended Nord Stream 2 gas pipeline project, has faced serious financial difficulties.
Uniper is currently receiving only around a fifth of normal gas deliveries from Russia and has been forced to buy more expensive gas on the open market to meet its supply contracts.
The German government has stepped in with a bailout of €15 billion, taking a 30% stake. Fortum will then be left with a 56% stake, down from 80% previously.
Uniper will have to bear the full losses until a levy on gas customers to be implemented by the German government takes effect in October. Rauramo said he did not expect an improvement in the financial situation until then.
“For the upcoming weeks and months, our focus is on agreeing with the German government on how to finalize and execute the details of this stabilization package, and to obtain all required regulatory approvals, including from the European Commission,” he said.
Uniper posted a loss for the first half of 2022 of €12 billion.
GNA