Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Uniper mulls reassembling German power plants in Britain - FAZ

Published 09/09/2017, 20:06
Updated 09/09/2017, 20:10
© Reuters. FILE PHOTO: The flag of Uniper flutters in Duesseldorf
EONGn
-
UN0k
-

FRANKFURT (Reuters) - German utility Uniper (DE:UN01) may dismantle German power plants, reassemble them in Britain, and could even buy stakes in British gas power stations, Chief Financial Officer Christopher Delbrueck told Frankfurter Allgemeine Zeitung.

Energy utilities are struggling with a German government decision to switch off nuclear power plants by 2022 in a market which is burdened by overcapacity and lacklustre profitability. The British market is less burdened with such oversupply, creating opportunities for Uniper, Delbrueck said.

"It may be worth it to disassemble some of the plants and to rebuild them in Great Britain. We need to do the maths on that carefully," Delbrueck told the Saturday edition of German newspaper Frankfurter Allgemeine Zeitung.

The unpredictability of energy market regulation makes investments in new German plants difficult, he said, but this is not the case in Britain.

"In a couple of years I think taking stakes in new gas power stations in Great Britain is a possibility," Delbrueck told the paper.

Uniper is interested in diversifying its business internationally, particularly in the energy trading business and may spend a triple-digit-million amount on acquisitions.

One way to fund takeovers is to sell off minority stakes in gas infrastructure investments.

"There are some activities where we hold minority stakes, without having a strategic interest. Such financial stakes could be divested," Delbrueck told the paper.

As part of an international diversification strategy, Uniper has made a 280 million euro (255 million pounds) payment towards Gazprom's Nord Stream 2 gas pipeline in the Baltic Sea, said Delbrueck.

© Reuters. FILE PHOTO: The flag of Uniper flutters in Duesseldorf

Erstwhile parent E.On (DE:EONGn), which split off parts of Uniper last year, has signalled it will sell off a further 47 percent in Uniper stake in 2018. Delbrueck said "a diversified placement on the market" would be his ideal scenario for the fate of the stake.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.