E.ON spin-off power company, Uniper, has recorded a $3.39bn (€3.2bn) loss, after writedowns of its generation and gas storage assets continued to impact.

The company is in its first financial year, and was formed as a means of adapting to the German Energiwende, or energy transition, which has badly affected conventional power assets that had backboned European utilities for decades.
Uniper
Power generated from coal and gas has been squeezed out of the market by abundant, subsidised wind and solar energy, which has also depressed the wholesale price of electricity.

The company is also suffering from the German government order to phase out nuclear power, which also resulted in a large pay-out by the company in order to satisfy waste decommissioning regulations.

Uniper, which listed in Frankfurt last September, said, despite the net loss it had delivered a “solid” operating performance and strengthened its balance sheet.It said its adjusted earnings before interest, taxes, depreciation and amortisation stood at €2.1bn, a 24 per cent increase on 2015.

Ebitda from its European generation division fell 42 per cent to €654m, due to lower power prices and higher nuclear provisions in Sweden. Klaus Schaefer, chief executive, said the solid performance in 2016 “gives us good momentum for 2017″.