Shares of Germany’s utility company, Uniper, experienced a significant surge in Wednesday morning trading after the company raised its annual guidance due to exceptionally strong results in the first half of the year.
As of 0715 GMT, Uniper’s shares were trading 22% higher at EUR6.12.
Uniper announced on Tuesday evening that it now expects to achieve a mid-single digit billion euro amount in adjusted net profit and adjusted earnings before interest and taxes this year, compared to the previously anticipated positive results.
The company attributed its success to hedging transactions in coal and gas-fired power generation as well as in the gas midstream business.
“In May, Uniper reported its successful forward hedging of exposed gas supply obligations, which were a result of the Russian gas curtailment. The positive impact of this one-time effect is beginning to be seen in the financial results for the first six months of the year 2023,” stated the company.
Preliminary figures indicate that Uniper anticipates an adjusted net profit of 2.49 billion euros ($2.75 billion) for the first half of the year, compared to a loss of EUR490 million in the same period last year. Additionally, the company expects adjusted earnings before interest and taxes (EBIT) to reach EUR3.70 billion, compared to a loss of EUR757 million previously.