Uniper SE (UNPRF) Q4 2022 Earnings Call Transcript

Uniper SE (OTCPK:UNPRF) Q4 2022 Earnings Conference Call February 17, 2023 2:30 AM ET

Company Participants

Stefan Jost - Executive Vice President of Group Finance and Investor Relations

Tiina Tuomela - Chief Financial Officer

Klaus-Dieter Maubach - Chief Executive Officer

Conference Call Participants

James Brand - Deutsche Bank

Sam Arie - UBS

Louis Boujard - ODDO BHF

Anna Webb - UBS

Piotr Dzieciolowski - Citigroup

Operator

Dear ladies and gentlemen, invited to nan Uniper Analyst and Investor Conference Call Full-Year Results 2022. At our customer’s request, this convention will beryllium recorded. As a reminder, each participants will beryllium successful a listen-only mode. After nan presentation, location will beryllium an opportunity to inquire questions.

May I now manus you complete to Stefan Jost, who will commencement nan gathering today. Please spell ahead.

Stefan Jost

Good morning, beloved analysts and investors. I would for illustration to invited you to this morning's convention telephone connected Uniper’s 2022 results. Our CFO, Tiina Tuomela is present pinch maine coming to stock nan cardinal events and financial numbers connected an exceptional year, focusing connected nan financial stabilization of nan company. I'm besides pleased to invited Sebastian Veit, arsenic Uniper’s caller Head of Investor Relations, succeeding our awesome workfellow Adam Strzyz.

For a number of years, Sebastian successfully led Uniper’s Governmental Relations squad and he is known arsenic an exceptional leader pinch awesome connection skills. Please invited Sebastian successful his caller role. There will beryllium plentifulness of occasions successful nan early for a get to know. As usual, we will person a Q&A convention astatine nan end.

And I manus you complete to Tiina, please.

Tiina Tuomela

Thank you, Stefan. A lukewarm invited from my side. Before I move to nan numbers, let maine a fewer individual remarks. This is my past expert and investor telephone for Uniper earlier returning to Fortum in April. Dear analysts and investors, I would for illustration to convey you each for your beardown committedness to Uniper, but I besides return nan opportunity to particularly convey nan full squad astatine Uniper for their relentless work. Reported by nan financial committedness of nan German government, Uniper has nan ground to return its early into its ain manus pinch a caller elder management. 2022 was a existent watershed twelvemonth for Uniper.

Now pinch awesome effort and nan €1 cardinal stabilization package agreed betwixt nan German government, Uniper and Fortum, a successful turnaround has been initiated. At year-end 2022, nan German authorities held a 99.12% liking successful Uniper. In return that nan authorities injected caller equity totaling of €13.5 cardinal successful December 2022 and moreover bought nan Uniper shares from Fortum.

Let maine guideline you done nan elements pinch stabilized Uniper’s financial guidelines astatine nan extremity of nan twelvemonth connected nan adjacent descent successful a moment. The superior header consequence for 2022 financial twelvemonth were already published successful nan ad-hoc merchandise connected February 1, 2023. The last figures now look somewhat different arsenic we had to reason a nonaccomplishment of power complete Unipro meanwhile. Hence, Russian powerfulness procreation is nary longer included wrong our continuing operation, but reported arsenic discontinued operations. The profit aliases nonaccomplishment arsenic good arsenic rate travel and KPI figures for nan erstwhile twelvemonth were restated arsenic discontinued operations.

Adjusted group EBIT successful fiscal 2022 totaled a nonaccomplishment of €10.9 cardinal compared pinch a affirmative consequence of €955 cardinal successful nan anterior twelvemonth period. Adjusted nett income besides slipped sharply into antagonistic territory. This consequence figures see astir €13.2 cardinal of realized further costs for procuring replacement state volumes owed to Russian curtailments.

Excluding this dominating effect, Uniper’s underlying business capacity successful this bonzer marketplace business was beardown overall. The full losses from state replacement procurement recalculated successful nan yearly financial statements 2022 now guidelines astir €19.1 cardinal alternatively of astir €40 cardinal arsenic reported successful our Q3 results driven by importantly little marketplace prices arsenic compared to nan extremity of September.

The 2023 financial twelvemonth will beryllium a modulation twelvemonth for Uniper. At nan apical of nan schedule is to push up pinch financial stabilization and portfolio rotation. The second is important to comply pinch nan remedy measures of nan EU commission. First steps are already underway arsenic demonstrated by nan displacement waste of Uniper’s liking successful nan BBL state pipeline and United Arab Emirates based crude lipid processing and marine substance trading business. What I like, Uniper retains nan integrity and a well-balanced portfolio and important financial occurrence powerfulness to put into its transformation.

Let america now return a look astatine Uniper’s existent business and wherever we guidelines pinch our stabilization. The equity position shows a important betterment since nan extremity of Q3 and moreover return to affirmative territory astatine €4.4 cardinal astatine nan year-end 2022. This turnaround has 2 main drivers. First, nan rate superior injection of €8 cardinal by nan German authorities and past an first drawdown of €5.5 cardinal from nan recently created authorized superior successful December 2022 pursuing support by Uniper shareholders astatine an bonzer shareholders gathering and pursuing nan state-aid support by nan EU commission.

Second, important reversal of provisions were made successful nan equilibrium expanse for nan full-year 2022 successful peculiar arsenic a consequence of nan remeasurement of provisions for nan expected further costs for procuring replacement rate volumes based connected importantly little marketplace value astatine nan extremity of December compared to extremity of September.

Please proceed to nan adjacent slide. The statement pinch nan German authorities stipulates that further costs for procuring replacement state volumes for nan play until 2024 will beryllium absorbed done equity injections. Uniper will make an ain publication of 30% per twelvemonth from its adjusted EBIT betwixt 2022 and 2024. Additional losses from nan state replacements costs are excluded from these numbers. The realized further costs for procuring replacement state volumes successful fiscal 2022 amounted to astir €13.2 billion.

At nan year-end 2022, nan provisions for anticipated early further costs for procuring replacement state volumes was recalculated and reduced sharply to €5.9 billion. On this line, you tin spot dramatically really overmuch nan imaginable losses would plaything pinch different state prices connected nan market. Of nan equity shield backed by nan national authorities up to €33 billion, €19.5 cardinal is still accessible. Against this background, nan remaining magnitude of nan recently created authorized superior is considered capable successful astir state value scenarios.

On nan adjacent slide, you tin spot different process of really Uniper is successful nan process of improving its financial position. Cash margining requirements from guardant income via commodity exchanges aliases bilateral income nether margining agreements were importantly little astatine nan extremity of 2022 than successful caller quarters. Lower commodity marketplace prices were nan main facet contributing to nan crisp caller diminution successful liquidity requirements. However, Uniper besides been actively moving to trim nan separator connected guardant deals done a prudent hedging strategy. Not to hide nan accustomed affirmative seasonality effect pinch much deliveries successful winter. As a result, location are little liquidity reserve required to service margining needs going forward.

The financing headroom astatine nan extremity of 2022 is simply a consequence of nan successful implementation of nan stabilization, including nan equity measures. The main intent of nan KfW installation is to supply a span financing for state replacement costs until these costs get compensated by nan authorities via equity injection nether nan recently created authorized capital. This protection against losses from Russian state flows besides provided a beardown awesome of governmental support for nan banks supporting renegotiation of in installments lines and thief to normalize day-to-day operations successful Uniper’s different businesses.

Moreover, nan in installments standing agencies Standard & Poor's Global had precocious reaffirmed an finance in installments standing for Uniper. Going forward, nan rumor of state replacement costs will beryllium flooded latest by nan extremity of 2024, and truthful nan other mean financial support from nan authorities via equity injection and besides via KfW in installments accommodation to support liquidity needs will beryllium facing retired complete time.

In a first step, nan €18 cardinal KfW installation has been reduced to €16.5 cardinal for 2023 and will beryllium gradually reduced further successful nan consequent years. All-in-all financing stabilization has taken a immense measurement guardant truthful far. Portfolio rotation pinch a specified disposal database required nether nan state-aid support of nan EU Commission is precocious connected nan guidance radar. The deadline to present connected nan committedness by 2026 gives Uniper capable leeway.

Overall, nan early portfolio will beryllium much focused connected Uniper’s halfway markets successful northwestern Europe, which keeps nan imaginable for synergy effects. What are nan astir salient candidates connected nan disposal list? To commencement pinch our Russian stock holding, Unipro has been put up for waste internally since 2021 arsenic communicated before. A transaction has been agreed pinch a Russian purchaser successful 2022, but nan governmental support for nan transaction is still outstanding and highly uncertain.

Further Russian punishment authorities has further impaired Uniper’s expertise to workout power arsenic a awesome shareholder. As a result, Unipro was deconsolidated astatine nan important nonaccomplishment astatine nan extremity of fiscal 2022 and is now reported arsenic discontinued cognition successful our yearly study 2022. On nan powerfulness procreation side, nan disposal database consists of Datteln 4 coal-fired powerfulness works successful North Rhine-Westphalia and gas-fired powerfulness activities successful Hungary.

Also for sale, definite gas-fired works interest, which are little of strategical relevance than successful nan past. Thereof, our 20% pipeline information successful nan UK, Dutch state pipeline BBL was already been sold. There are besides marketplace stock limitation successful nan state shale business successful Germany. All-in-all, it is important database of remedy commitments, but astatine nan aforesaid time, it allows Uniper to instrumentality its strategy and translator path.

Now connected to nan figures from 2022 financial statement. Let's commencement pinch nan overview of Uniper’s main operating indicators. Physical state retention levels astatine nan year-end 2022 successful Europe were unusually precocious driven by revised regulatory framework, beardown LNG imports and coupled pinch request reductions and acknowledgment to mild temperatures. This surely took a batch of nan cheaters retired of nan market.

Gas storages successful nan EU were astir 85% afloat astatine nan extremity of December 2022. Uniper’s retention level arsenic of nan reporting day was moreover a tick higher than Germany's wide capable level of 90%. Power accumulation successful our European procreation conception recorded a alteration successful powerfulness procreation of 7%, but only a mini diminution adjusted for disposal effects.

Uniper’s outright fleet pinch its hydro and atomic powerfulness procreation recorded a somewhat little output overall. While nan hydro powerfulness plants successful Northern Europe delivered much electricity, nan German powerfulness works suffered from a superior drought past summer. Higher volumes and atomic were held backmost by extended outages astatine our Oskarshamn 3 powerfulness works and astatine nan Ringhals 4 powerfulness works participation.

Output astatine our fossil powerfulness plants was satisfactory against nan inheritance of anemic wide request for energy successful Europe. Overall, we recorded a flimsy drop, which was acold much than offset by higher spreads. The output of our coal-fired powerfulness portfolio was supported by a impermanent return of nan 875 megawatt Heyden 4 powerfulness works to amended information of proviso successful Germany, which has been scheduled for closer.

Another affirmative factor, we were allowed to afloat tally Dutch powerfulness works Maasvlakte 3 aft nan cancellation of nan output headdress arsenic a consequence of Dutch information of proviso method. Output from our gas-fired powerfulness plants successful 2022 was somewhat down. The UK remains nan acold astir important marketplace for gas-fired powerfulness procreation for Uniper. Carbon emissions of Europe procreation and world commodities decreased by 7% peculiarly because nary much lignite has been burnt since October 2021, pursuing nan disposal of our 1 lignite plant. European generation’s c strength fell somewhat beneath nan complaint of 400 grams per kilowatt hour.

Let's now move connected to our cardinal financials for nan 2022 financial year. And arsenic said before, nan comparison numbers for 2021 were adjusted for discontinued operations of our Russian powerfulness business. The operating results people nan bottommost and are a turning constituent for Uniper. Uniper’s cardinal financials person been importantly impacted by nan further costs for procuring replacement rate volumes besides successful nan 4th fourth of nan 2022 financial year. This disguise a very coagulated underlying result.

Looking astatine adjusted EBIT and adjusted EBITDA for nan 2022 financial year, nan figures are highly positive, if nan realized further costs for procuring replacement state volumes of astir €13.2 cardinal are isolated. I'll get to nan cardinal consequence drivers connected nan very adjacent slide. The operating rate travel intelligibly reflects nan precocious realized further costs for procuring replacement state volumes. In addition, location was a sizeable summation successful moving superior arsenic a consequence of nan crisp year-on-year emergence successful commodity prices paid pinch higher state injections and a raised ember stock.

With regards to adjusted nett income, nan realized nonaccomplishment was partially offset by corresponding affirmative taxation effect. Group nett income and economical nett indebtedness were weaker than anterior year, but importantly amended than successful nan past 9 months report. The group published nett income for 2022 of minus €19 cardinal was materially up versus Q3 2022 pinch a reported nett nonaccomplishment of €40.3 billion. The quality betwixt adjusted nett income and published nett income is chiefly driven by non-operating accounting effects relating to nan Russian business arsenic good arsenic nan consequence from discontinued operation.

First, a proviso of €5.9 cardinal successful our conception world commodities for nan anticipated further costs for procuring replacement state volumes. Second, plus and goodwill impairments totaling €3.1 billion, including a Nord Stream 2 indebtedness impairment of €1 billion. Third, different awesome effect stems from nan deconsolidation of Unipro starring to a deconsolidation nonaccomplishment of €4.4 billion. Economic nett indebtedness astatine nan extremity of nan twelvemonth showed a important betterment compared to Q3 numbers arsenic a consequence of nan rate equity injection of nan German authorities successful December 2022.

On nan adjacent slide, I would for illustration to dive into nan cardinal drivers of adjusted EBIT. This descent intelligibly shows really nan further costs for procuring replacement state volumes wholly predominate Uniper’s capacity successful nan 2022 financial year. In opposition for different activities person been capable to lend positively to nan company's net development. In general, it shows that Uniper is tin of generating further net successful a volatile marketplace environment.

In nan world commodity segment, nan net publication of nan commodity state activities stay patient arsenic a consequence of successful optimization business, including nan optimization of our retention capacities. The world commodity consequent world reported an EBIT nonaccomplishment successful nan mid-three-digit cardinal euro range. The consequence [indiscernible] by a nonaccomplishment of deliveries of contractually secured LNG cargos owed to a occurrence astatine nan U.S. LNG liquidation terminal Freeport. Missing volumes had to beryllium procured alternatively connected nan marketplace astatine nan higher cost.

The commodity powerfulness business pinch optimization and powerfulness trading made an unexpectedly beardown twelvemonth and maturation and delivered its highest publication to day to nan net of nan world commodity segment. The European procreation business achieved a substantially improved operating consequence wide successful nan 2022 financial year. The fossil portfolio converted elevated dispersed into higher margins. This effect was peculiarly evident successful Q4 2022. Adjusted EBIT was additionally driven by nan reversal of nan intra-year c phasing successful Q4.

Earnings drivers astatine fossil powerfulness portfolio wherever difficult ember for powerfulness plants successful each European markets we run in. Rising dispersed had a progressively affirmative margining effect present complete nan people of nan year, and were only partially burdened by higher costs from nan diversification of ember procurement contracts distant from Russian sources. The gas-fired powerfulness plants repeated a bully anterior twelvemonth capacity successful 2022. Our UK gas-fired powerfulness plants peculiarly contributed to nan business success, acknowledgment to precocious spreads.

Earnings astatine Outright were importantly little than a twelvemonth earlier. Earnings of our Swedish atomic activities slipped much sharply than planned into nan reddish zone. Swedish atomic was chiefly impacted by inflation-related higher summation to nan proviso for decommissioning and dismantling exertion and unplanned unavailability. By contrast, hydros net were somewhat higher year-on-year, acknowledgment to an fantabulous last 4th successful fiscal 2022.

In position of improved readiness successful Q4, further spot volumes were sold astatine precocious prices, particularly successful nan Nordic markets. This besides compensated nan proviso regularisation resulting from nan debased h2o levels successful Germany past summertime and deteriorating EPAD, i.e., energy value area differentials successful Sweden. We remained cautious successful hedging our outright position fixed nan separator requirements involved.

A affirmative inclination successful hedge prices was visible successful nan twelvemonth and number compared nan lock-in prices backmost successful September. The operating consequence arsenic good arsenic nan deconsolidation nonaccomplishment of Russian powerfulness generation, namely Unipro, is now reported wrong nan statement point income and nonaccomplishment from discontinued operations successful our profit and loss.

Following a roundup of nan cardinal operating net drivers, I would now for illustration to move to operating rate flow, which was besides nan attraction of our caller ad-hoc announcement. Coming to nan operating rate flow, which came successful astatine minus €15.6 billion. Besides of nan recorded operating loss, nan main driver present was nan crisp summation successful moving superior requirements. Significant increases successful commodity acquisition prices contributed to this.

At nan aforesaid time, we accrued state inventories successful our storages and ember supplies astatine our powerfulness works tract owed to governmental requirements and connected improved marketplace situation and each astatine higher acquisition cost. In addition, location was a guidelines effect resulting from liquidity optimization measures successful 2021 pinch OCF being shifted astatine nan disbursal of nan twelvemonth 2022.

Now to nan latest figures connected Uniper’s nett debt. At nan year-end 2022, economical nett indebtedness stood astatine €3 billion, which is €2.7 cardinal higher compared to nan extremity of 2021. At nan extremity of nan 3rd 4th of fiscal 2022, economical nett indebtedness still amounted to €11 cardinal arsenic a consequence of nan realized further costs for procuring replacement state volumes to nan Russian curtailments. Although nan continued accumulation of losses further deteriorated operating rate travel done to nan extremity of nan year, nan equity injections of €13.5 cardinal by nan German authorities successful December, people a important turnaround successful Uniper’s nett financial position.

At €0.6 cardinal superior expenditure astatine nan little extremity of nan plant. Here we had to put nan brakes connected our maturation plan, peculiarly to nan uncertain development. In 2022, maturation finance amounted to conscionable nether €0.2 billion. Lower pension provisions were supportive for Uniper’s nett indebtedness reflecting higher liking rate. The discount complaint for German pensions roseate to 3.7% for nan UK moreover to 5%. This was offset by higher provisions for plus status application, chiefly arsenic a consequence of higher allocations to nan Swedish atomic provisions.

I would for illustration to reason my position pinch an outlook of nan cardinal net drivers for fiscal 2023. The financial effect caused by nan replacement of Russian state supplies will stay nan decisive plaything facet for Uniper’s group net improvement successful 2023. This intends that Uniper is improbable to person capable power complete net improvement successful 2023 owed to commodity value change that continues to beryllium difficult predict.

Today, we tin supply an outlook for 2023 pinch a qualitative guidance compared to 2022 actuals. Based connected nan existent commodity spot and guardant marketplace prices forecast for 2023, nan adjusted EBIT and adjusted nett income for nan group would move retired supra anterior twelvemonth level. It should beryllium a bully twelvemonth for nan European Generation segment. The procreation portfolio should use from a fundamentally higher mean value level.

We besides expect fewer antagonistic one-off effects i.e. from nan absence of nan move successful our ember procurers operation past year. Moreover, specified precocious allocation to proviso pinch respect to atomic powerfulness procreation should not repetition again. For nan world commodity segments, little burdens from nan replacement procurement of Russian state could likewise consequence successful a net improvement.

Finally, a fewer closing remarks. Uniper has a beardown operational halfway guidelines which has to beryllium further developed for nan early and a changing power market. The first measurement stabilization to nan beardown financial committedness of nan German national authorities has been successfully put america backmost connected track. The group's nett indebtedness and return to affirmative equity astatine nan twelvemonth extremity 2022 are clear grounds of nan turnaround achieved. A caller guidance committee squad will group nan caller target successful adjacent consultation pinch nan caller supervisory report. From here, Uniper tin erstwhile again look to nan early pinch much confidence.

This brings maine to nan extremity of our position today. The level is backmost to you, Stefan.

Stefan Jost

Thank you, Tiina. And beloved listeners, we tin statesman our Q&A convention now. As always, please effort to instrumentality to 2 questions only. Operator, handing it complete to you.

Question-and-Answer Session

Operator

Thank you very much, Mr. Jost. Now we will statesman our question-and-answer session. [Operator Instructions] And nan first mobility comes from James Brand from Deutsche Bank. Please spell ahead.

James Brand

Hi, bully morning. Thanks for nan presentation. So I'll inquire – I've sewage 3 questions, but possibly I'll travel backmost to nan 3rd successful nan queue. So firstly, there's immoderate comments earlier from Tiina that nan business now had very important firepower to put successful nan business. And you besides showed successful nan sensitivity descent connected state losses that fundamentally location aren’t going to beryllium immoderate aliases – aren't going to beryllium galore losses, fixed wherever nan state prices astatine nan moment. So should we return that arsenic a motion that you don't request immoderate much equity injections successful nan German state? It’s mobility number one.

And past secondly, connected nan taxation losses. So I spot that your deferred taxation assets person only gone up astir benignant of €800 cardinal besides to €2.8 billion. I was wondering whether you could conscionable talk done a spot nan benignant of reasoning there, why you felt for illustration you couldn't entree astir of nan taxation losses that could person been crystallized this twelvemonth and whether location are immoderate different ways that you tin entree those losses. Thanks.

Tiina Tuomela

Thank you, James for your questions. So nan first 1 relates to nan early of nan state losses and imaginable request for equity injection. So arsenic stated, truthful location is rather large volatility what comes to nan state prices and therefore, I deliberation it is very uncertain to opportunity precisely what are nan numbers and request for nan further equity injection. I deliberation pinch nan existent prices, intelligibly important betterment if we comparison to September prices, truthful intelligibly affirmative trend, but I deliberation we are cautious and truthful we look astatine quarter-by-quarter and spot that really nan business developed. So therefore, we are pleased that we person nan authorized superior of €25 cardinal wherever we person already utilized €5.5 cardinal to unafraid successful lawsuit location are successful a measurement further curtailment costs.

Then your 2nd questions related to taxation losses. So nan taxes really developed rather interestingly this year. First of all, if we look astatine nan taxation complaint connected our adjusted and nett income, truthful that accrued to 32%, and this is owed to nan precocious losses successful Germany and namely these replacement state losses. However, what we did successful a measurement effect and did recognized them successful our nett income statements. The logic being that because nan state replacement costs were truthful high, we saw that it's not definite if we tin usage those successful nan coming years and therefore, we only partially admit this nether IFRS.

James Brand

What would nan gross taxation losses be, please?

Tiina Tuomela

Thank you.

Stefan Jost

Sorry, James, nan mobility again? We didn't get that.

James Brand

Yes. Sorry, I was conscionable asking, what would nan gross taxation losses be, please?

Stefan Jost

Sorry. Still it didn't travel through.

James Brand

Okay. I'll follow-up pinch IR.

Stefan Jost

Yes. Makes sense.

Operator

We are now going complete to our adjacent question. Our adjacent mobility comes from Sam Arie from UBS. Please spell ahead.

Sam Arie

Hello. It's Sam from UBS. Good morning, everybody. Two questions. I think, Tiina, you said thing absorbing astir nan Russia disposal, that you person a transaction group and a purchaser and truthful on, but you're conscionable waiting for nan governmental approval. If I understood that right, tin you corroborate for america what's nan valuation connected nan assets that you are seeking support for? I deliberation that'd beryllium very adjuvant information.

And past my 2nd mobility was conscionable possibly into a spot of detail, but evidently location was a antagonistic successful nan atomic that you've reported this morning, and – sorry, you said that was owed to outages and further provisions, and I conscionable wondered if you could conscionable explain for us, really overmuch those negatives are related to Ringhals versus Oskarshamn? My presumption is it's astir apt chiefly a Ringhals effect and Oskarshamn was okay, but tin you locomotion america done that? Thank you.

Tiina Tuomela

Hello. Good morning, Sam. So starting pinch nan Russian disposal, truthful I stated, we started nan waste process internally already successful 2021, and past past year, we made nan statement pinch nan Russian buyer. Naturally, unfortunately, nan valuation is confidential for nan transaction. However, we spot that we request to activity nan support from this statesmanlike support and presently arsenic stated, we spot that very uncertain.

Then nan mobility astir nan nuclear, truthful nan consequence was antagonistic and I would opportunity that half of nan alteration was coming from nan unplanned outages. And then, arsenic you said, we had nan outages successful Oskarshamn 3, but I deliberation nan bigger effect came from nan Ringhals 4, wherever we person nan participation. So we are not operating nan plant, but of course, get nan powerfulness and past nan outage has taking longer clip and really still continuing. So that will effect america that we person little powerfulness and partially we person hedge, truthful we request to bargain nan powerfulness from nan market.

Then nan different portion of nan reduced atomic profitability came from nan plus status obligation. And this was nan twelvemonth erstwhile we updated nan scheme for nan section authorities and pinch nan existent ostentation environment. So nan costs for nan decommissioning and atomic discarded costs accrued and therefore, erstwhile discounted to nan today's worth truthful nan proviso accrued and that had a antagonistic effect to our profitability. But this twelvemonth this effect should not hap again. So it is nan benignant of nan one-time effect and besides what comes to nan accumulation volume. So we expect much normal operations erstwhile nan Ringhals repair has been finalized.

Sam Arie

Okay. Thank you. That's really helpful. On nan nuclear, I deliberation that's clear. Just a speedy follow-up. If forgive maine connected Russia, I understand you're not going to disclose evaluation, but conscionable thief america out, broadly speaking, should we deliberation of it arsenic a adjacent worth that you've negotiated and you're waiting for support on? Or should we deliberation of it arsenic a benignant of stone bottommost knockdown value successful bid to conscionable get retired of nan Russian vulnerability hopefully astatine immoderate affirmative numbers?

Tiina Tuomela

Thank you, Sam. I afloat understand nan liking for nan number, but unfortunately, I'm not capable to disclose immoderate number. That would beryllium a fewer successful a measurement speculation astatine this moment. So clearly, I deliberation affirmative thing, statement successful place, very uncertain successful nan governmental environment.

Sam Arie

Okay. Excellent. Thank you very much. Thanks for your presentation. And bully luck besides to you Tiina.

Tiina Tuomela

Thank you very much, Sam. That’s very benignant of you.

Sam Arie

Thank you.

Operator

And we are now going complete to nan adjacent question. Our adjacent mobility comes from Louis Boujard of ODDO BHF. Please spell ahead, sir.

Louis Boujard

Yes. Good morning. Thank you for taking my question. Two connected my side, whitethorn nan first 1 coming backmost connected nan taxation loss. I understand that portion of it tin – mightiness not beryllium recovered successful nan future. But maybe, knowing that astir of it came from Germany, could you fto america cognize really agelong are you going to beryllium capable to retrieve nan taxation nonaccomplishment successful Germany successful nan future? And past astatine what clip it'll not beryllium imaginable anymore to retrieve this slot and they will beryllium nonaccomplishment for you.

And nan 2nd mobility would beryllium regarding nan chart that you provided to america connected nan slide, page 5. We understand, of course, that adjacent to €50 per megawatt hour, location is nary much nonaccomplishment to beryllium expected connected your portfolio. However, nan mobility would beryllium nan following, what happens if nan state prices had to driblet beneath this level? Does that mean that you will beryllium capable to seizure nan amended margins and to support it, aliases will you person to walk it for your customers? And if we person a unchangeable value to gas, let's opportunity for lawsuit astatine €75 per megawatt hr successful nan adjacent 2 years, does that mean that we should admit two-third of nan nonaccomplishment successful 2023 and one-third successful 2024, considering that nan volumes consecutive distant going forward? That would beryllium my mobility connected this slide. Thank you very much.

Tiina Tuomela

Thank you, Louis, for your questions. So basically, what comes to nan taxation losses, truthful arsenic acold arsenic I cognize location is nary restrictions really to usage it. So basically, it is for nan future. It's much – we took nan very prudent position to nan really overmuch we admit and therefore, we embed portion of nan deferred taxation asset. But what is left, truthful nary limitations. Then your 2nd questions was astir nan state request costs and what happens if nan – successful a measurement – prices get successful a measurement little than what we person sold to nan market. So then, of course, we would use from nan situation. I deliberation really nan stabilization package first of each has been successful distant plant, we get nan further equity only for nan incurred costs.

And past our ain stock to participate to this replacement costs is 30% of our EBIT, which exclude nan rate curtailment cost. And this is done successful a measurement conscionable connected nan yearly level and successful case, location is successful a measurement little needs. So we will administer successful a measurement – successful 1 measurement aliases other, nan benignant of nan use backmost to nan German government. But this is intelligibly thing of course, what we request to activity pinch nan German government, really nan look works. But nan scheme is that we only get nan compensation for nan realized losses, including past our ain publication from nan EBIT, excluding nan curtailment costs.

Louis Boujard

Thank you. And pinch regards to nan assumptions successful position of measurement impact, is it correct to see connected nan unchangeable state value situation that much aliases little two-third of nan expected nonaccomplishment would beryllium recognized this twelvemonth and one-third successful 2024, aliases it has have?

Tiina Tuomela

All right. Yes. So basically, if I springiness a very unsmooth estimate, truthful I would opportunity that astir possibly moreover 85% is coming 2023 and past remaining 15% successful 2024, truthful mostly this year.

Louis Boujard

Okay. Thank you very much.

Tiina Tuomela

Thank you.

Operator

We are now going complete to our adjacent question. Our adjacent mobility comes from Anna Webb from UBS. Please spell ahead.

Anna Webb

Hi. Thank you very overmuch for nan position and for taking my question. Two for me. Firstly, you mentioned nan [indiscernible] your liking successful nan BBL pipeline, but I saw nan Enagas announced that they're canceling that transaction aft nan existent shareholders workout [indiscernible]. So I conjecture now you person to look for a caller bias about, but do you person immoderate penetration into why nan existing shareholders person exercised that right? And what I understand, Enagas didn't spot that arsenic likely. So do you foresee trouble successful completing this transaction and is location a consequence you person akin difficulties pinch nan different divestment that you are required to complete? That's nan first question.

And past if I could explain connected nan equity injection, I deliberation from what I tin see, nan authorities has put successful €13.5 cardinal and nan resulting stock count is astir €8.3 billion. And if commodity prices enactment astatine nan existent level, past you apt don't request much equity, but if state prices do spike again, you could entree thing astir €20 cardinal much equity, which could beryllium injected successful nan future. Is that correct to understand there? Yes, conscionable to get a spot much explanation connected that, that'd beryllium great. Thank you very much.

Tiina Tuomela

Thank you, Anna, for nan questions. So to your first question, nan BBL, successful a way, sale, first of all, we are very pleased that we very simply could execute nan deal, what comes to nan wrong and nan correct – first correct of review. So we don't person immoderate inside. This is up to nan parties and normal behaviour of nan transaction that location is this benignant of rights. And nan different statement person now exercised. For us, of course, nan important point is that nan waste is signed and proceeding.

Then what comes to nan equity injections. So yes, I deliberation you described it very correctly. So currently, we person sewage nan €13.5 cardinal equity injection. If much equity needed is roughly, €19.5 cardinal still available, that afloat depends connected nan state value development. So if needed, we'll get nan equity if nan prices stay nan low, truthful not apt further need.

Anna Webb

Okay. Great. Thank you very much.

Operator

We are now going complete to our adjacent question. Our adjacent mobility comes from Piotr Dzieciolowski from Citi. Please spell ahead, sir.

Piotr Dzieciolowski

Hi. Good morning, everybody. Two questions for me, please? So nan first one, I wanted to inquire you if you cognize what is nan much for illustration a semipermanent strategical position of nan German government, what to do pinch nan institution and specifically will nan Nordic assets travel for waste fixed nan preemptive value for Fortum to bargain these assets? And secondly, I wanted to inquire you connected nan state business beyond nan 2024, person you changed nan measurement you behaviour nan business by hedging nan volumes to your clients? And you passed connected immoderate risk, truthful you would debar a definite benignant of business that if you don't get volumes and you person to spell backmost to nan market, has this business changed aliases this is business that successful nan past and you presume that nan different counterparties are reliable? Thank you.

Tiina Tuomela

Hello, Piotr, and acknowledgment for your questions. So what comes to nan German authorities and nan early strategical views, truthful currently, we are moving pinch nan strategy, making bully advancement and besides caller guidance – coming to nan duties. So basically, I deliberation this is confirmed erstwhile finalized. So we request to still hold for. At nan infinitesimal what comes to nan Nordic. So Nordic is not portion of nan responsibility from nan stabilization packet, truthful nary denotation there.

And I deliberation your 2nd mobility related really to behaviour nan business aft 2024. So basically, intelligibly what comes to our, successful general, our hedging strategy, truthful we person adjusted already, reacted to nan business really do we hedge successful nan future. What comes to nan state particularly? Clearly, we are besides location looking nan replacement proviso sources, besides replacement income successful distant channels. And we are synchronizing these 2 items to balance. Clearly, I deliberation this existent situation, we person taken our lessons learned, and that will beryllium reflected successful nan early hedging and nan measurement we tally nan business.

Piotr Dzieciolowski

Okay. Thank you very much.

Operator

And we are going complete to our adjacent question. Our adjacent mobility comes from James Brand from Deutsche Bank. Please spell ahead, sir.

James Brand

Hello, again. Just commencement pursuing up pinch my 3rd question, if that's okay. And that's nan countries that you highlighted arsenic being halfway and non-core. And Sweden is 1 of them that's highlighted arsenic being a core. And there's sometimes rather a batch of speculation arsenic to whether aliases not you could waste your Swedish assets to support them, which obviously, I'm not expecting you to remark specifically connected that. But conscionable successful position of your categorization of Sweden arsenic a halfway market, should we return that arsenic a motion that would not beryllium a state successful which you would beryllium looking to make disposals? Thank you very much.

Tiina Tuomela

Thank you, James. I deliberation Sweden is our halfway marketplace and contributing important net peculiarly successful nan longer word erstwhile nan hedge position will change. Currently, Sweden is not connected nan request to dispose from nan German state, truthful I would not for illustration to speculate. So currently, we return very bully attraction of our Swedish plus and spot it arsenic a main portion of our business.

James Brand

Okay. Thank you very overmuch and bully luck for nan early backmost astatine Fortum.

Tiina Tuomela

Thank you very much, James.

Operator

We person nary further questions. I would for illustration to manus nan telephone backmost to our speakers.

Unidentified Company Representative

Okay. Thank you, Stefan. Thank you, all. And past galore acknowledgment I deliberation to Tiina coming and for serving Uniper and each of our stakeholders done this difficult times. And convey you each beloved listeners, we spot you soon. I will beryllium nan caller CFO, latest Q1. Thank you, all. Bye for now.

Operator

Ladies and gentlemen, convey you for your attendance. This telephone has been concluded. You whitethorn now disconnect.