Uniper seeks $4.1bn from state lender as liquidity deteriorates

Bloomberg

German energy giant Uniper SE is seeking to extend a government credit line to 13 billion euros ($13 billion) in the latest sign of how the energy crisis is getting worse.
The utility has requested an additional 4 billion euros ($4.1 bilion) from Germany’s state-owned lender KfW after fully using its existing 9 billion-euro credit line, Uniper said in a statement on Monday.
The Dusseldorf-based company’s liquidity position has deteriorated further because of surging prices and a massive shortfall in deliveries from Russia. The request came just as its parent company Fortum Oyj said the collateral it needs to provide to trade power rose by 1 billion euros in a week.
Uniper is the biggest victim of the worst energy crisis in decades, losing more than 100 million euros a day. Its survival is now dependent on handouts from the state, which announced a bailout earlier this summer. Its loss of more than 12 billion euros for the first half is one of the biggest in German corporate history.
Germany has warned that the firm’s collapse could lead to spill over on the local utilities and companies that rely on Uniper for gas and power.
“We are working at full speed with the German government on a permanent solution to this emergency,” Uniper Chief Executive Officer Klaus-Dieter Maubach said in the statement. “Otherwise Uniper will no longer be able to fulfill its system-critical function for Germany and Europe.”
In July, Germany agreed to shore up Uniper to the tune of 17 billion euros, making the firm the first major energy company to seek a bailout. Since June 14, Uniper has received only part of the contractually agreed gas supply from Russia. The shortfall in deliveries now amounts to 80%, the firm said on Monday. To ensure security of supply for its customers, Uniper is procuring the currently missing volumes on the market at significantly higher prices.
While European gas futures plunged as much as 20% on Monday, they are still trading more than 5 times their level a year ago.