Q2 2026 Uniper SE Earnings Call
Speaker #1: Dear ladies and gentlemen, welcome to the Juniper Analyst and Investor Conference call. First-year half-year results: at our request, this conference call will be recorded.
Speaker #1: As a reminder, all participants will be in a listen-only mode. After the presentation, there will be an opportunity to ask questions by dialing *1* on your telephone.
Speaker #1: May I now hand you over to the Executive Vice President, Investor Relations, Sebastian Veit, who will start the meeting today. Please go ahead.
Speaker #2: Thank you, Operator, and good morning everyone. I'm pleased to welcome you to our first half results of fiscal year 2026. Next to me on today's call are Michael Lewis, our Chief Executive Officer; and Christian Barr, our Chief Financial Officer.
Speaker #2: Michael will present an update on our key developments in the first half of 2026, and Christian will walk you through our first half financial performance and our financial year outlook for the remainder of this year.
Speaker #2: And as usual, we will wrap up with a Q&A session at the end. And now, let me hand over to Michael Lewis. Please.
Speaker #3: Thanks, Sebastian, and good morning everyone from my side, and thank you for joining our call. So let me start with the key highlights, and I'm very happy to confirm that Juniper delivered solid financial results for the first 6 months of 2026 and is fully on track to meet our financial guidance.
Speaker #3: We continue to navigate steadily through the increased volatile markets in reaction to the conflict in the Middle East, and whilst our operational business has not been directly impacted by the conflict, we had some operational challenges nonetheless in the first half of 2026.
Speaker #3: The weak hydro conditions in Germany and the Nordic region, together with an unforeseen outage at Oskarshamn 3, weighed on earnings in green generation. This was partly offset by higher Nordic power prices, stronger UK capacity market earnings, and improved head results for our flexible generation.
Speaker #3: The main positive driver in this first year comes from greener commodities, which rebounded from negative territory compared to last year when the segment was still burdened from past optimization spillover effects.
Speaker #3: So, putting all this into numbers: group-adjusted EBITDA reached 711 million euros, nearly doubling year-on-year, and group-adjusted net income came in at around 388 million euros.
Speaker #3: Against this background, we've narrowed our financial outlook for 2026, reflecting what we said in the beginning of 2026, that Juniper today is more focused and more balanced.
Speaker #3: And we now expect adjusted EBITDA to range between 1.1 billion and 1.3 billion euros, and adjusted net income is expected to come in between 500 million and 600 million euros.
Speaker #3: And Christian will provide additional details on the financials and the outlook shortly. And let me add here: we continue to work on strengthening our portfolio, and we're making progress step by step.
Speaker #3: Just recently, we added another element to the rebuilding and diversification of our gas portfolio, by concluding a gas supply contract with Sea Lizons Canadian LMG project for up to 20 years.
Speaker #3: And our efforts to strengthen our portfolio contribute to security of supply, increased sourcing flexibility, and reduced exposure to individual regions and market disruptions. And it's also being recognized by our credit rating agencies.
Speaker #3: Notably, we received for the first time an issuer rating by Fitch of BBB-, with a stable outlook. Also, S&P and Scope reaffirmed their investment-grade rating, and stable outlook for Juniper with BBB- and BBB-, respectively.
Speaker #3: And with the resumption of shareholder distributions, we added another missing piece to bringing Juniper back to capital market readiness. Excuse me. The 72 cents per share dividend paid in May reflects both our confidence in the sustainability of our business model and our commitment to shareholder returns.
Speaker #3: Let me now turn to our home market in Germany. We're well positioned to participate in the upcoming Strom-Valkarg auctions, with around 1.7 gigawatt of hydrogen-ready new gas-fired power plants.
Speaker #3: Our existing infrastructure and advanced permitting underpin our sound preparation. And we're confident to be able to execute and deliver our projects in the event of a successful award in the auctions.
Speaker #3: In summary, we are ready. And looking beyond the capacity, looking beyond capacity mechanisms, we also see attractive growth opportunities in the expanding development of data centers.
Speaker #3: Where our sites are grid connections and energy expertise, provide a solid foundation for future value creation. And I'll discuss this in more detail in a couple of minutes.
Speaker #3: Now, let me highlight how current market trends fit into our broader strategy. So over the past 12 months, we've further sharpened our portfolio and investment priorities, to address the key trends shaping Europe's energy future.
Speaker #3: First, strengthening security of supply. Second, enabling decarbonization. And third, supporting electrification and meeting growing power demand driven by digitization and AI. And we've systematically strengthened the foundations of our business.
Speaker #3: Our gas procurement portfolio is more diversified today, both in terms of suppliers and geographic sourcing. And combined with rigorous risk management and a strong balance sheet, this has significantly enhanced the resilience of our company.
Speaker #3: As a result, Juniper stands today on a stable and sustainable foundation. We operate from a fundamentally stronger position, with a business model that is better equipped to navigate uncertainty whilst capturing the opportunities arising from Europe's increasing electricity demand.
Speaker #3: And taken together, our strong performance and the progress we've made in transforming and strengthening the company give us confidence in our ability to continue creating value for our customers, for society, and for shareholders alike.
Speaker #3: And this brings me to the next slide, concerning our sharpened capex plan. Looking ahead, we continue our with our plan to invest around 5 billion euros in growth and transformation by 2030, building on our core strengths and flexible and low-carbon generation.
Speaker #3: In the near term, more than half of our planned growth and transformation capex are expected to be deployed in flexible generation. The key enabler is the progress on Germany's power market framework, with the legislative approval of the so-called Strom-Valkarg a key prerequisite has now been established to support investments in new dispatchable generation capacity and strengthen long-term security of supply.
Speaker #3: As I mentioned earlier, we stand ready. The first capacity auction is scheduled for September the 8th, with 4.5 gigawatts to be tendered. Followed by a second round with another volume of 4.5 gigawatts envisaged for December this year.
Speaker #3: And these bring us closer to executing on some of our major growth investments. With our planned hydrogen-ready gas-fired power plants at Scholven and Staudinger, Juniper is well positioned to contribute to Germany's future security of supply whilst creating sustainable long-term value for shareholders.
Speaker #3: In parallel, the German government continues to advance plans for a permanent capacity market from 2031 onwards, providing long-term providing a long-term framework to support system stability and investment in reliable generation capacity.
Speaker #3: We also see attractive growth opportunities arising from the increase of data center demand. It's expected that this trend will drive substantial growth in power consumption across Europe, creating additional demand for reliable and low-carbon power solutions.
Speaker #3: At the same time, Juniper is well positioned to benefit from this trend. And I'll come back to this in more detail shortly. For green generation, we continue to grow our renewables business, backed by a well-filled project pipeline.
Speaker #3: Projects totaling 570 megawatts are currently in execution. And we signed several long-term power purchase agreements across offshore wind and solar in Germany and Poland.
Speaker #3: And our aim is to bring around 500 megawatts of renewable projects to final investment decision annually, going forward. And this supports our objective of creating sustainable long-term value while further strengthening future earnings resilience.
Speaker #3: And finally, we have a clear roadmap for rebuilding our gas and LNG business and to capture emerging opportunities in renewable and low-carbon gases. Moving on to the next slide, I want to share with you how we're positioned to benefit from the growing demand for data centers.
Speaker #3: The rapid growth in AI is driving unprecedented demand for data center capacity. At the same time, access to power, sites, and grid connections is a critical bottleneck.
Speaker #3: For Juniper, this represents a compelling growth opportunity. Our portfolio includes strategic brownfield sites, and existing infrastructure in some of Europe's most attractive future data center locations.
Speaker #3: We can offer hyperscalers and data center developers an integrated infrastructure proposition, combining strategic brownfield sites and support for securing power capacity and grid connection.
Speaker #3: This enables us to participate in one of Europe's fastest growing markets. Valuation value creation starts with site development through land sales or land leases and selected co-investment opportunities.
Speaker #3: Beyond site development, we see future upside earnings potential through long-term power purchase agreements. And as of today, we've identified more than 10 locations with the potential to host data center developments.
Speaker #3: These sites across Germany and the UK, three sites across Germany and the UK, are already progressing through more advanced development stages. Now, before I hand over to Christian, let me share our key priorities for the remainder of the year 2026.
Speaker #3: For the second half of the year, our priorities are clear. First, Juniper will support the reprivatization process for which we are well positioned. Over the past years, we've significantly strengthened our balance sheet, reduced risk, improved our operational performance, and established a clear and consistent equity story.
Speaker #3: Second, with regulatory clarity now in place through the Strom-Valkarg, we are well prepared for the upcoming auctions. The outcome of these auctions will shape the majority of our planned growth and transformation investments, through to 2030.
Speaker #3: And third, operational execution remains key, and is the focus delivering our our results for the second half of the year. In this context, we will also complete our leadership team and Christian Ohms will join us as chief commercial officer effective October the 1st.
Speaker #3: And finally, we're on track to complete our cost savings program by the end of 2026, unlocking around 100 million euros in annual savings from 2027 onwards.
Speaker #3: With that, I'll now hand over to Christian, who will guide you through our numbers for the first half of the year. Christian.
Speaker #2: Yeah, thanks, Mike, and a very warm welcome to all of you, also from my side. And as Mike mentioned, Juniper delivered a solid first half performance despite several market and operational factors that weighed on earnings during the second quarter.
Speaker #2: Group-adjusted EBITDA increased by 332 million euros year over year to 711 million euros, and in addition, group-adjusted net income improved by 253 million euros to 388 million euros.
Speaker #2: The improvement was primarily driven by a significantly stronger contribution from our gas midstream business, following the well-known substantial earning burden recorded in the prior year period.
Speaker #2: This overcompensated for somewhat lower contributions from greener generation and flexible generation. Overall, the generation businesses were impacted by lower generation volumes for both green and flexible generation segments, which were partially offset by higher Nordic prices, stronger UK capacity earnings, and improved hedge results in flexible generation.
Speaker #2: However, we are seeing supportive market developments across parts of the portfolio, as we move into the second half of the year. Importantly, we have already secured close to 60% of the midpoint of our full-year earnings outlook, providing a solid foundation for the remainder of 2026.
Speaker #2: As a result, we remain confident in achieving full-year guidance, which we're now able which we are now able to narrow both for adjusted EBITDA and adjusted net income.
Speaker #2: With that, let us now take a closer look at the reconciliation of group-adjusted EBITDA from the first half of 2025 to the first half of 2026 to understand the key factors shaping Juniper's operating performance.
Speaker #2: As the waterfall chart shows, the most significant positive change came from greener commodities. Which delivered an adjusted EBITDA of 260 million euros compared with a negative contribution of nearly 300 million euros in the first half of 2025.
Speaker #2: This development was largely driven by past optimization measures in the gas midstream business, where the earnings were affected where the earnings affected that weighed on the prior year period where no longer present.
Speaker #2: In addition, our LNG business continued to deliver earnings at an elevated level, albeit below the exceptionally strong contribution recorded in the first half of 2025.
Speaker #2: Green generation delivered an adjusted EBITDA of 302 million euros compared to or compared with 420 million euros in the prior year period, German hydro earnings declined due to less favorable hedge positions, following an exceptionally high price environment in the past embedded in the prior year result, generation volumes weakened modestly, reflecting another year of similarly similarly weak precipitation conditions as in 2025.
Speaker #2: The favorable pricing environment in Sweden that we discussed during our first quarter results call continued to support earnings in the first half. Particularly through a stronger realized prices in January and February.
Speaker #2: Despite lower hydro volumes, earnings from our Swedish hydro operations were higher in the first half of 2026 than in the comparable period last year.
Speaker #2: However, the stronger hydro contribution was not sufficient to fully offset the impact of reduced nuclear generation, primarily due to the earlier start and longer duration of the outage as Oskarskam 3 relative to the prior year period.
Speaker #2: Following completion of the necessary remedial measures, Oskarshamn 3 has been ramped up again and returned to normal operations in July. Following the increase in Swedish power prices captured during the first quarter of 2026, forward hedge prices remained largely unchanged between the end of March and the end of June.
Speaker #2: At the same time, we continued to build our hedge positions by locking in additional volumes across the 2026 to 2028 delivery periods. Turning to flexible generation, the segment generated an adjusted EBITDA of 286 million euros compared with 333 million euros in the first half of 2025.
Speaker #2: Improved market conditions in Germany and the Netherlands translated into stronger hedge results, while higher UK capacity market earnings further supported earnings during the period.
Speaker #2: These positive effects largely offset lower generation volumes, mainly reflecting weaker UK power spreads, lower availabilities, issuing, and a smaller asset base following the disposal of Dutton 4.
Speaker #2: In addition, the positive contribution from legal dispute settlements recorded in the prior year period did not occur did not recur in H1 2026. Finally, the year-over-year development in Edman and others largely driven by foreign exchange effects.
Speaker #2: The next slide shows adjusted EBITDA reconciled to adjusted net income. The development in group-adjusted net income largely followed the strong year-over-year improvement and adjusted EBITDA.
Speaker #2: Adjusted net income increased to 388 million euros in the first half of 2026 compared with 135 million euros in the prior year period. Depreciation and amortization of almost 260 million euros remained broadly stable year-over-year with only marginal change compared with the first half of 2025.
Speaker #2: Below operating profit, we continued to report positive economic interest result of 56 million euros, albeit at the lower level than in the prior year period.
Speaker #2: The year-over-year decline primarily reflects valuation effects on the provisions, and lower interest income on cash balances as market interest rates continued to decrease. These effects were partially offset by lower commitment fees following the termination of our KFW credit facilities at the end of 2025.
Speaker #2: Last, the tax rate on operating earnings is 25.3%. Let us now move to the next slide and look at the development of operating cash flow.
Speaker #2: Slide number 12 shows the reconciliation from adjusted EBITDA to operating cash flow, which remained at a very strong level. Please keep in mind that this is elevated level is primarily driven by the seasonal working capital effects and therefore does not reflect the normal cash conversion characteristics of our business.
Speaker #2: Provision utilization included cash payments to the German federal government related to previously realized attachment proceeds, which had a negative impact on the cash flow during the period.
Speaker #2: Working capital requirements were substantially lower mainly reflecting seasonal gas withdrawals and only moderate gas storage refilling on in the second quarter. In addition, operating cash flow benefited from a stronger seasonal rhythm cash inflow from wholesale customers and power related receivables, resulting in a positive working capital contribution overall.
Speaker #2: Other was positively influenced by a non-operating compensation settlement of 165 million euros received from the Dutch government. This payment relates to the to restrictions on coal-fired power generation imposed by the Netherlands in 2022.
Speaker #2: As a result, operating cash flow amounted to almost 2 billion euros, in the first half of 2026, as we already indicated earlier this year, we continued to expect operating cash flow to be front-loaded in 2026.
Speaker #2: The planned rebuild of gas inventories plus the seasonal increase of wholesale and power receivables and associated with working capital effects in the second half will wait on cash generation, meaning that full-year cash conversion is expected to be below 100%.
Speaker #2: With that, let us now move to the latest figures on Uniper's economic net debt. At the end of June, 2026, economic net cash increased to 4.5 billion euros compared with 2.8 billion euros at year-end 2025.
Speaker #2: The main driver of this development was the strong seasonal driven operating cash flow generated in the first half of 2026. At the same time, capital expenditures remained comparatively low.
Speaker #2: Previously indicated, we expect investments to be more weighted towards the second half of the year, reflecting potential rewards from the upcoming German capacity market auctions.
Speaker #2: During the period, we also resumed dividend payments and distributed 72 euro cents per share or 300 million euros to shareholders in May, following approval at the annual general meeting.
Speaker #2: In addition, economic net cash benefited from lower from overall lower asset retirement and pension provision compared with year-end 2025. The latter reflects strong returns on planned assets during the first half of this year.
Speaker #2: Overall, our financial position remains very strong and provides a solid foundation to fund future growth investments while maintaining substantial financial flexibility. As cash generating generation normally of the course of the year, normalizes over the course of the year, we expect both our net cash position at year-end 2026 to be below the exceptionally strong levels reported today.
Speaker #2: Nevertheless, we continue to operate with significant liquidity reserves, consisting of cash, fixed income, and committed credit facilities, providing ample flexibility to execute our strategy and respond to changing market conditions.
Speaker #2: With that, let me conclude my presentation by turning to our outlook for the financial year 2026 on the next slide. For the full year, we remain firmly on track.
Speaker #2: As we said earlier this year, Uniper is on a solid footing and continues to navigate more volatile markets steadily. Including the effects of the ongoing Middle East crisis.
Speaker #1: Cash.
Christian Barr: Cash, fixed income, and committed credit facilities, providing Uniper flexibility to execute our strategy and respond to changing market conditions. With that, let me conclude my presentation by turning to our outlook for the financial year 2026 on the next slide. For the full year, we remain firmly on track. As we said earlier this year, Uniper is on a solid footing and continues to navigate more volatile markets steadily, including the effects of the ongoing Middle East crisis. At the same time, our 2026 earnings profile remains front-loaded. With greater visibility for H2 2026, we are narrowing our 2026 guidance while lifting the lower end of the range by EUR 100 million for group-adjusted EBITDA and by EUR 150 million for the group-adjusted net income. We now expect group-adjusted EBITDA of EUR 1.1 to 1.3 billion and group-adjusted net income of EUR 500 to 600 million.
Christian Barr: Cash, fixed income, and committed credit facilities, providing Uniper flexibility to execute our strategy and respond to changing market conditions. With that, let me conclude my presentation by turning to our outlook for the financial year 2026 on the next slide. For the full year, we remain firmly on track. As we said earlier this year, Uniper is on a solid footing and continues to navigate more volatile markets steadily, including the effects of the ongoing Middle East crisis. At the same time, our 2026 earnings profile remains front-loaded. With greater visibility for H2 2026, we are narrowing our 2026 guidance while lifting the lower end of the range by EUR 100 million for group-adjusted EBITDA and by EUR 150 million for the group-adjusted net income. We now expect group-adjusted EBITDA of EUR 1.1 to 1.3 billion and group-adjusted net income of EUR 500 to 600 million.
Speaker #2: Fixed income and committed credit facilities, providing ample flexibility to execute our strategy and respond to changing market conditions. With that, let me conclude my presentation by turning to our outlook for the financial year 2026 on the next slide.
Speaker #2: At the same time, our 2026 earnings profile remains front-loaded. With greater visibility for the second half 2026, we are narrowing our 2026 guidance while lifting the lower end of the range by 100 million euros for group adjusted EBITDA and by 150 million euros for the group adjusted net income.
Speaker #2: For the full year, we remain firmly on track. As we said earlier this year, Uniper is on a solid footing and continues to navigate more volatile markets steadily.
Speaker #2: We now expect group adjusted EBITDA of 1.1 to 1.3 billion euros and group adjusted net income of 500 to 600 million euros. As said before, 2026 marks our new baseline, reflecting a more focused portfolio also following following completed asset disposal.
Speaker #2: Including the effects of the ongoing Middle East crisis, at the same time our 2026 earnings profile remains front-loaded. With greater visibility for the second half of 2026, we are narrowing our 2026 guidance, while lifting the lower end of the range by €100 million for group-adjusted EBITDA and by €150 million for group-adjusted net income.
Speaker #2: In a nutshell, H1 2026 performance was solid despite operational headwinds in our generation business. We are well positioned for the remainder of the year, supported by a more resilient portfolio.
Speaker #2: We now expect group-adjusted EBITDA of €1.1 to €1.3 billion and group-adjusted net income of €500 to €600 million. As said before, 2026 marks our new baseline, reflecting a more focused portfolio following completed asset disposals.
Speaker #2: Strategy execution is progressing while with H2 expected to provide clearer visibility on the development of our capex plans. This concludes today's presentation and with that, I would like to hand back to Sebastian to open the Q&A session Sebastian, over to you please.
Christian Barr: As said before, 2026 marks our new baseline, reflecting a more focused portfolio also following completed asset disposal. In a nutshell, H1 2026 performance was solid despite operational headwinds in our generation business. We are well-positioned for the remainder of the year, supported by a more resilient portfolio. Strategy execution is progressing with H2 expected to provide clearer visibility on the development of our CapEx plans. This concludes today's presentation, and with that, I would like to hand back to Sebastian to open the Q&A session. Sebastian, over to you, please. Thank you.
Christian Barr: As said before, 2026 marks our new baseline, reflecting a more focused portfolio also following completed asset disposal. In a nutshell, H1 2026 performance was solid despite operational headwinds in our generation business. We are well-positioned for the remainder of the year, supported by a more resilient portfolio. Strategy execution is progressing with H2 expected to provide clearer visibility on the development of our CapEx plans. This concludes today's presentation, and with that, I would like to hand back to Sebastian to open the Q&A session. Sebastian, over to you, please. Thank you.
Speaker #2: Thank you.
Speaker #1: Thank you, Michael and Christian. We can start the Q&A session now and operator, I'm handing it over to you please.
Speaker #2: In a nutshell, H1 2026 performance was solid despite operational headwinds in our generation business. We are well positioned for the remainder of the year, supported by a more resilient portfolio.
Speaker #3: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed with the number one on your touchstone phone.
Speaker #2: Strategy execution is progressing, with H2 expected to provide clearer visibility on the development of our CapEx plans. This concludes today's presentation, and with that, I would like to hand back to Sebastian to open the Q&A session. Sebastian, over to you, please.
Speaker #3: You will hear a prompt at your hand has been raised. Should you wish to decline from the polling process, please press star two. If you're using a speakerphone, please lift the handset before pressing any keys.
Speaker #3: Our first question comes from the line of Anna Webb from UBS. Please go ahead.
Speaker #4: Hi, good morning. Thanks for taking my questions. First question on the CCGT tenders in Germany. Can you just give us some detail about how much you intend to tender, like how many gigawatts you intend to bid into the process?
Speaker #2: Thank you.
Speaker #1: Thank you, Michael and Christian. We can start the Q&A session now. Operator, I'm handing it over to you, please.
Sebastian Veit: Thank you, Michael and Christian. We can start the Q&A session now, and operator, I am handing it over to you, please.
Sebastian Veit: Thank you, Michael and Christian. We can start the Q&A session now, and operator, I am handing it over to you, please.
Speaker #3: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press star, followed by the number 1 on your touchtone phone.
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star two. If you are using a speakerphone, please lift the handset before pressing any keys. Our first question comes from the line of Anna Webb from UBS. Please go ahead.
Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star two. If you are using a speakerphone, please lift the handset before pressing any keys. Our first question comes from the line of Anna Webb from UBS. Please go ahead.
Speaker #4: And also where you are on the supply chain? Obviously, as we know, the gas turbine market is very tight, so have you secured your production slot and pricing for that?
Speaker #3: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star 2. If you are using a speakerphone, please lift the handset before pressing any keys.
Speaker #4: Any detail you can give us there would be great. And secondly, appreciate it's a difficult topic for you to comment on, but anything you can factually say around where the government is in their sale process.
Speaker #3: Our first question comes from the line of Anna Webb from UBS. Please go ahead.
Speaker #4: Hi, good morning. Thanks for taking my questions. First question on the CCGT tenders in Germany: can you just give us some detail about how much you intend to tender—like how many gigawatts you plan to bid into the process—and also where you are on the supply chain?
Anna Webb: Hi. Good morning. Thanks for taking my questions. First question on the CCGT tenders in Germany. Can you just give us some detail about how much you intend to tender, like how many gigawatts you intend to bid into the process? Also, where you are on the supply chain. Obviously, as we know, the gas turbine market is very tight, so have you secured your production slot and pricing for that? Any detail you can give us there would be great. Secondly, appreciate it is a difficult topic for you to comment on, but anything you can factually say around where the government is in their sale process? I think there has been quite a lot of reports around the potential buyers and the kind of private sale route.
Anna Webb: Hi. Good morning. Thanks for taking my questions. First question on the CCGT tenders in Germany. Can you just give us some detail about how much you intend to tender, like how many gigawatts you intend to bid into the process? Also, where you are on the supply chain. Obviously, as we know, the gas turbine market is very tight, so have you secured your production slot and pricing for that? Any detail you can give us there would be great. Secondly, appreciate it is a difficult topic for you to comment on, but anything you can factually say around where the government is in their sale process? I think there has been quite a lot of reports around the potential buyers and the kind of private sale route.
Speaker #4: I think there's been quite a lot of reports around the potential buyers and the kind of private sale route. I just wanted to know if the IPO is still on the table or if we have any detail anything you can comment kind of factually on that process.
Speaker #4: Just to give us a bit more clarity would be really helpful. Thank you.
Speaker #4: Obviously, as we know, the gas turbine market is very tight. So, have you secured your production slot and pricing for that? Any detail you can give us there would be great.
Speaker #1: Thanks, Anna. I will answer both of those questions. First of all, on the Strom Falcagi tender process, which is, as you say, hydrogen-ready CCGTs, we will bid in at 1.7 gigawatts.
Speaker #4: And secondly, I appreciate it's a difficult topic for you to comment on, but is there anything you can factually say around where the government is in their sale process?
Speaker #1: That's two projects, Scholven in Nordrhein-Westfalia and Doudinga in Hessen. Both of them very good sites where we've already done a lot of the pre-work and, you know, I've said it before, we believe we have very good sites and we believe we have a very competitive position.
Speaker #4: I think there's been quite a lot of reports around the potential buyers and the kind of private sale route. I just wanted to know if the IPO is still on the table, or if we have any details—anything you can comment on, factually, about that process.
Anna Webb: I just wanted to know if the IPO is still on the table or if we have any detail, anything you can comment factually on that process, just to give us a bit more clarity would be really helpful. Thank you.
Anna Webb: I just wanted to know if the IPO is still on the table or if we have any detail, anything you can comment factually on that process, just to give us a bit more clarity would be really helpful. Thank you.
Speaker #1: In terms of our sourcing of plant from the OEMs, yes, we have a strategic relationship with Siemens Energy which we've had for some time and so we have secured the relevant plant and equipment for those projects.
Speaker #4: Just to give us a bit more clarity would be really helpful. Thank you.
Speaker #1: Thanks, Anna. I will answer both of those questions. First of all, on the Strom-Valkargi tender process, which is, as you say, hydrogen-ready CCGTs—we will bid in at 1.7 gigawatts.
Michael Lewis: Thanks, Anna. I will answer both of those questions. First of all, on the Kraftwerksstrategie tender process, which is, as you say, hydrogen-ready CCGTs, we will bid in at 1.7 gigawatts. That is two projects, Scholven in Nordrhein-Westfalen and Datteln in Hesse. Both of them very good sites where we have already done a lot of the pre-work. I have said it before, we believe we have very good sites, and we believe we have a very competitive position. In terms of our sourcing of plant from the OEMs, yes, we have a strategic relationship with Siemens Energy, which we have had for some time, so we have secured the relevant plant and equipment for those projects. So we are very confident we are in a good position to enter those auction processes.
Michael Lewis: Thanks, Anna. I will answer both of those questions. First of all, on the Kraftwerksstrategie tender process, which is, as you say, hydrogen-ready CCGTs, we will bid in at 1.7 gigawatts. That is two projects, Scholven in Nordrhein-Westfalen and Datteln in Hesse. Both of them very good sites where we have already done a lot of the pre-work. I have said it before, we believe we have very good sites, and we believe we have a very competitive position. In terms of our sourcing of plant from the OEMs, yes, we have a strategic relationship with Siemens Energy, which we have had for some time, so we have secured the relevant plant and equipment for those projects. So we are very confident we are in a good position to enter those auction processes.
Speaker #1: So we're very confident we're in a good position to enter those auction processes. As far as the reprivatization is concerned, I can only restate what the government has already said, namely that they which they announced in May in the financial times, they are pursuing two options, one of which is a private sale, one of which is a potential IPO.
Speaker #1: That's two projects: Scholven in Nordrhein-Westfalen and Daudinger in Hessen. Both of them are very good sites where we've already done a lot of the pre-work. And I've said it before—we believe we have very good sites, and we believe we have a very competitive position.
Speaker #1: In terms of our sourcing of plant from the OEMs, yes, we have a strategic relationship with Siemens Energy, which we've had for some time, and so we have secured the relevant plant and equipment for those projects.
Speaker #1: And any other questions about that, I'm afraid, must be directed to the German government.
Speaker #4: Sorry, can I just ask one very quick follow-up on the first question?
Speaker #1: Sure.
Speaker #4: You said you'd secured the supply chain with Siemens. Is that a fixed price already or is that to be negotiated at a later date?
Speaker #1: So we're ready to enter those auction processes. As far as the reprivatization is concerned, I can only restate what the government has already said—namely, what they announced in May in the Financial Times. They are pursuing two options: one of which is a private sale, and one of which is a potential IPO.
Michael Lewis: As far as the reprivatization is concerned, I can only restate what the government has already said, namely, which they announced in May in the Financial Times. They are pursuing two options, one of which is a private sale, one of which is a potential IPO. Any other questions about that, I am afraid, must be directed to the German government.
Michael Lewis: As far as the reprivatization is concerned, I can only restate what the government has already said, namely, which they announced in May in the Financial Times. They are pursuing two options, one of which is a private sale, one of which is a potential IPO. Any other questions about that, I am afraid, must be directed to the German government.
Speaker #1: No, that's all we have already locked in prices.
Speaker #4: Great. Thanks so much.
Speaker #3: Your next question comes from the line of Peter Crampton from Barclays. Please go ahead.
Speaker #1: Good morning. Thank you for taking my questions. Two, if I may. One relates to obviously seeing quite poor hydro conditions across Europe. Yet today, you raised your 26 guidance.
Speaker #1: And any other questions about that, I'm afraid, must be directed to the German government.
Speaker #4: Sorry, can I just ask one very quick follow-up on the first question?
Anna Webb: Sorry, can I just ask one very quick follow-up on the first question?
Anna Webb: Sorry, can I just ask one very quick follow-up on the first question?
Speaker #1: So is the assessment kind of, you know, correct that given kind of your integrated conventional kind of generation operations, you're able to offset that kind of weakness?
Speaker #1: Sure.
Speaker #4: You said you'd secured the supply chain with Siemens. Is that a fixed price already, or is that to be negotiated at a later date?
Michael Lewis: Sure.
Michael Lewis: Sure.
Anna Webb: You said you'd secured the supply chain with Siemens Energy. Is that at a fixed price already, or is that to be negotiated at a later date?
Anna Webb: You said you'd secured the supply chain with Siemens Energy. Is that at a fixed price already, or is that to be negotiated at a later date?
Speaker #1: No, that's all. We have already locked in prices.
Michael Lewis: No, we have already locked in prices.
Michael Lewis: No, we have already locked in prices.
Speaker #1: And then the second question relates to Oskar's HAM3 in Sweden, we've obviously seen general outage some extra outages on top. Are you now kind of projecting kind of these plant properly kind of returning back to service or is there risk of further outages?
Speaker #4: Great. Thanks so much.
Anna Webb: Great. Thanks so much.
Anna Webb: Great. Thanks so much.
Speaker #3: Your next question comes from the line of Peter Crampton from Barclays. Please go ahead.
Operator: Your next question comes from the line of Peter Crampton from Barclays. Please go ahead.
Operator: Your next question comes from the line of Peter Crampton from Barclays. Please go ahead.
Speaker #1: Good morning, thank you for taking my questions. Two, if I may. One relates to obviously seeing quite poor hydro conditions across Europe. Yet today, you raised your 2026 guidance.
Peter Crampton: Good morning. Thank you for taking my questions. Two, if I may. One relates to obviously seeing quite poor hydro conditions across Europe. Is the assessment kind of correct that given your integrated conventional generation operations, you are able to offset that kind of weakness. Then the second question relates to Oskarshamn 3 in Sweden. We have obviously seen general outage, some extra outages on top. Are you now projecting these plants properly returning back to service, or is there risk of further outages? Thank you.
Peter Crampton: Good morning. Thank you for taking my questions. Two, if I may. One relates to obviously seeing quite poor hydro conditions across Europe. Is the assessment kind of correct that given your integrated conventional generation operations, you are able to offset that kind of weakness. Then the second question relates to Oskarshamn 3 in Sweden. We have obviously seen general outage, some extra outages on top. Are you now projecting these plants properly returning back to service, or is there risk of further outages? Thank you.
Speaker #1: Thank you. Thanks, Peter. I'll take the second question first and then I'll hand over to Christian to talk about the remainder of the year and the impact of hydro conditions.
Speaker #1: So is the assessment kind of correct that given your integrated conventional generation operations, you're able to offset that kind of weakness?
Speaker #1: So when it comes to Oskar's HAM3, you're absolutely right, there was an extended outage which was longer than we had planned for. There were various technical reasons for that.
Speaker #1: And then the second question relates to Oskar Thames 3 in Sweden, we've obviously seen general outage some extra outages on top. Are you now kind of projecting kind of these plant properly kind of returning back to service or is there risk of further outages?
Speaker #1: What I can say is though, we are now back in operation and we don't expect any further challenges this year. And we are back on track.
Speaker #1: Maybe Christian, if you want to pick up the first question.
Speaker #1: Thank you.
Speaker #2: Yeah, happy to pick up the first question. You're right. We saw a really severe hydro conditions in the German but also in the Swedish market in the first half and we expect this continue to a third in extent.
Speaker #2: Thanks, Peter. I'll take the second question first, and then I'll hand over to Christian to talk about the remainder of the year and the impact of hydro conditions.
Michael Lewis: Thanks, Peter. I will take the second question first, and then I will hand over to Christian to talk about the remainder of the year and the impact of hydro conditions. When it comes to Oskarshamn 3, you are absolutely right. There was an extended outage, which was longer than we had planned for. There were various technical reasons for that. What I can say is, though, we are now back in operation, and we do not expect any further challenges this year, and we are back on track. Maybe Christian, if you want to pick up the first question?
Michael Lewis: Thanks, Peter. I will take the second question first, and then I will hand over to Christian to talk about the remainder of the year and the impact of hydro conditions. When it comes to Oskarshamn 3, you are absolutely right. There was an extended outage, which was longer than we had planned for. There were various technical reasons for that. What I can say is, though, we are now back in operation, and we do not expect any further challenges this year, and we are back on track. Maybe Christian, if you want to pick up the first question?
Speaker #2: So when it comes to Oskar Thames 3, you're absolutely right—there was an extended outage, which was longer than we had planned for. There were various technical reasons for that.
Speaker #2: Also into the third quarter at least and all of these conditions, the drought in both markets are considered in our current forecast and our current guidance.
Speaker #2: What I can say is, though, we are now back in operation and we don't expect any further challenges this year. We are back on track.
Speaker #2: So any of the market conditions be it on the generation side or on the price side are of course always considered in our latest forecast.
Speaker #2: Maybe, Christian, if you want to pick up the first question.
Speaker #1: Yeah, happy to pick up the first question. You're right, we saw really severe hydro conditions in the German but also in the Swedish market in the first half, and we expect this to continue to a third and extent also into the third quarter at least. All of these conditions, the drought in both markets, are considered in our current forecast and our current guidance.
Speaker #2: Yes.
Christian Barr: Happy to pick up the first question. You are right. We saw really severe hydro conditions in the German, but also in the Swedish market in H1, and we expect this to continue to a certain extent also into Q3 at least. All of these conditions, the drought in both markets are considered in our current forecast and our current guidance. Any of the market conditions, be it on the generation side or on the price side, are of course always considered in our latest forecast. Yes.
Christian Barr: Happy to pick up the first question. You are right. We saw really severe hydro conditions in the German, but also in the Swedish market in H1, and we expect this to continue to a certain extent also into Q3 at least. All of these conditions, the drought in both markets are considered in our current forecast and our current guidance. Any of the market conditions, be it on the generation side or on the price side, are of course always considered in our latest forecast. Yes.
Speaker #1: Perfect. Very clear. Thank you.
Speaker #3: Your next question comes from the line of Louis Bouillard from Odoo BHF. Please go ahead.
Speaker #5: Yes, hi. Good morning everyone. Thank you for the presentation and thank you for taking my question. Maybe three on my side if I may.
Speaker #5: The first one regarding the guidance. You raised the bottom of the guidance to 1.1 to 1.3 and 500 to 600. But you post 700 and 11 million euros of EBITDA in the first half.
Speaker #1: So any of the market conditions, be it on the generation side or on the price side, are of course always considered in our latest forecast.
Speaker #5: And could you please elaborate on what could explain why you seem to be maybe a little bit cautious regarding the implied H2? That we could expect?
Speaker #1: Yes, perfect. Very clear. Thank you.
Peter Crampton: Perfect. Very clear. Thank you.
Peter Crampton: Perfect. Very clear. Thank you.
Speaker #3: Your next question comes from the line of Louis Bouillard from ODDO BHF. Please go ahead.
Speaker #5: My second question would be regarding the cash flow generation, operating cash flow extremely strong in the 1H, I think close to 2 billion euros.
Operator: Your next question comes from the line of Louis Boujard from Oddo BHF. Please go ahead.
Operator: Your next question comes from the line of Louis Boujard from Oddo BHF. Please go ahead.
Speaker #5: Yes, hi. Good morning, everyone. Thank you for the presentation and thank you for taking my question. Maybe three on my side. The first one regarding the guidance: you raised the bottom of the guidance to €1.1 to €1.3 billion and €500 to €600 million, but you posted €711 million of EBITDA in the first half. Could you please elaborate on what could explain why you seem to be maybe a little bit cautious regarding the implied H2 that we could expect?
Louis Boujard: Yes. Hi. Good morning, everyone. Thank you for the presentation, and thank you for taking my question. Maybe three on my side, if I may. The first one regarding the guidance. You raised the bottom of the guidance to EUR 1.1 to EUR 1.3 billion and EUR 500 to EUR 600 million, but you post EUR 711 million of EBITDA in the H1. Could you please elaborate on what could explain why you seem to be maybe a little bit cautious regarding the implied H2 that we could expect? My second question would be regarding the cash flow generation. Operating cash flow extremely strong in the H1, I think close to EUR 2 billion. Most likely some seasonal effect. Could you eventually provide us with elements regarding what could reverse in the H2 and how much of the cash generation will remain by the end of the year?
Louis Boujard: Yes. Hi. Good morning, everyone. Thank you for the presentation, and thank you for taking my question. Maybe three on my side, if I may. The first one regarding the guidance. You raised the bottom of the guidance to EUR 1.1 to EUR 1.3 billion and EUR 500 to EUR 600 million, but you post EUR 711 million of EBITDA in the H1. Could you please elaborate on what could explain why you seem to be maybe a little bit cautious regarding the implied H2 that we could expect? My second question would be regarding the cash flow generation. Operating cash flow extremely strong in the H1, I think close to EUR 2 billion. Most likely some seasonal effect. Could you eventually provide us with elements regarding what could reverse in the H2 and how much of the cash generation will remain by the end of the year?
Speaker #5: Most likely some seasonal effect. Could you eventually provide us with elements regarding what could reverse in the second half and how much of the cash generation will remain by the end of the year?
Speaker #5: And maybe one last question at this point in time regarding the data center. You have identified more than 10 sites could you give us more details on the three projects that are apparently well advanced regarding the location, the potential capacities, expected timing and more importantly do you think that eventually there is room for final investment decision in this kind of project and potentially increase the capex envelope of 5 billion euros in the relatively short term regarding these kind of development?
Speaker #5: My second question would be regarding the cash flow generation. Operating cash flow was extremely strong in the first half, I think close to €2 billion.
Speaker #5: Most likely some seasonal effect. Could you eventually provide us with elements regarding what could reverse in the second half, and how much of the cash generation will remain by the end of the year?
Speaker #5: Thank you very much.
Speaker #1: Thanks, Louis. I will pick up on the last question then I'll hand over to Christian to deal with the question on guidance for the second half and whether we are cautious and on cash flow and what elements are repeatable and where we expect the position to be at year end.
Speaker #5: And maybe one last question at this point in time regarding the data center. You have identified more than 10 sites. Could you give us more details on the three projects that are apparently well advanced, regarding the location, the potential capacities, expected timing, and more importantly, do you think that eventually there is room for a funding investment decision in this kind of project and potentially increase the CapEx envelope of €5 billion in the relatively short term regarding these kinds of development?
Louis Boujard: Maybe one last question at this point in time regarding the data center. You have identified more than 10 sites. Could you give us more details on the three projects that are apparently well advanced regarding the location, the potential capacities, expected timing, and more importantly, do you think that eventually there is room for a final investment decision in this kind of project and potentially increase the CapEx envelope of EUR 5 billion in the relatively short term regarding this kind of development? Thank you very much.
Louis Boujard: Maybe one last question at this point in time regarding the data center. You have identified more than 10 sites. Could you give us more details on the three projects that are apparently well advanced regarding the location, the potential capacities, expected timing, and more importantly, do you think that eventually there is room for a final investment decision in this kind of project and potentially increase the CapEx envelope of EUR 5 billion in the relatively short term regarding this kind of development? Thank you very much.
Speaker #1: But when I come onto the data centers, yes, we have three projects, two of which are in the UK and one is in Germany.
Speaker #1: At this stage, I don't want to give away too many details because we are in critical discussions with potential counterparties. What I can say is we have various different business models for those sites.
Speaker #5: Thank you very much.
Speaker #1: Thanks, Louis. I will pick up on the last question, then I'll hand over to Christian to deal with the question on guidance for the second half and whether we are cautious, as well as on cash flow—what elements are repeatable and where we expect the position to be at year-end.
Michael Lewis: Thanks, Louis. I will pick up on the last question, then I will hand over to Christian to deal with the question on guidance for the H2 and whether we are cautious and on cash flow and what elements are repeatable and where we expect the position to be at year-end. When I come onto the data centers, yes, we have three projects, two of which are in the UK and one is in Germany. At this stage, I don't want to give away too many details because we are in critical discussions with potential counterparties. What I can say is we have various different business models for those sites, either providing infrastructure and grid connection or a land sale or a lease. That depends on the specific site, specific challenges of that site, and on what the potential counterparty wants.
Michael Lewis: Thanks, Louis. I will pick up on the last question, then I will hand over to Christian to deal with the question on guidance for the H2 and whether we are cautious and on cash flow and what elements are repeatable and where we expect the position to be at year-end. When I come onto the data centers, yes, we have three projects, two of which are in the UK and one is in Germany. At this stage, I don't want to give away too many details because we are in critical discussions with potential counterparties. What I can say is we have various different business models for those sites, either providing infrastructure and grid connection or a land sale or a lease. That depends on the specific site, specific challenges of that site, and on what the potential counterparty wants.
Speaker #1: Either providing infrastructure and grid connection, or a land sale or a lease. And that depends on the specific site, specific challenges of that site and on what the potential counterparty wants.
Speaker #1: But when I come onto the data centers, yes, we have three projects—two of which are in the UK and one is in Germany.
Speaker #1: But we do expect within the next 18 months to be able to announce some more concrete progress there and precisely what those deals entail and precisely what they mean for Uniper.
Speaker #1: At this stage, I don't want to give away too many details because we are in critical discussions with potential counterparties. What I can say is we have various different business models for those sites.
Speaker #1: But like I said, there's some fairly detailed commercial discussions ongoing at the moment. So I don't want to say any more at this stage.
Speaker #1: As soon as we're in a position to do so, we will of course give you more details. Christian, do you want to pick up on question one?
Speaker #1: Either providing infrastructure and grid connection, or a land sale or a lease. And that depends on the specific site, the specific challenges of that site, and on what the potential counterparty wants.
Speaker #2: Question one and two. The first question, if I got it correctly, was a question regarding our guidance. 1.1 to 1.3 billion euros and to which extent are hydro risks the current severe situation around the drought is incorporated?
Speaker #1: But we do expect, within the next 18 months, to be able to announce some more concrete progress there, and precisely what those deals entail and what they mean for Uniper.
Michael Lewis: We do expect within the next 18 months to be able to announce some more concrete progress there and precisely what those deals entail and precisely what they mean for Uniper. Like I said, there are some fairly detailed commercial discussions ongoing at the moment, so I don't want to say any more at this stage. As soon as we are in a position to do so, we will, of course, give you more details. Christian, do you want to pick up on question one?
Michael Lewis: We do expect within the next 18 months to be able to announce some more concrete progress there and precisely what those deals entail and precisely what they mean for Uniper. Like I said, there are some fairly detailed commercial discussions ongoing at the moment, so I don't want to say any more at this stage. As soon as we are in a position to do so, we will, of course, give you more details. Christian, do you want to pick up on question one?
Speaker #2: As I said in the question before, we are considering and forecasting that the drought might continue in both markets in Germany and in Sweden.
Speaker #1: But like I said, there are some fairly detailed commercial discussions ongoing at the moment, so I don't want to say any more at this stage.
Speaker #1: As soon as we are in a position to do so, we will, of course, give you more details. Christian, do you want to pick up on question one?
Speaker #2: It doesn't stop on the 30th of June. And of course we took some analysis to derive what this might mean and we came to the conclusion that the impact financial impact from lower generation on the German also on the Swedish side will continue to appear for a certain period of time, at least for Q3.
Speaker #2: Question one and two. The first question, if I got it correctly, was a question regarding our guidance: €1.1 to €1.3 billion, and to what extent are hydro risks, specifically the current severe situation around the drought, incorporated.
Christian Barr: Question one and two. The first question, if I got it correctly, was a question regarding our guidance, EUR 1.1 to EUR 1.3 billion, and to which extent a hydro risk, the current severe situation around the drought is incorporated. As I said in the question before, we are considering and forecasting that the drought might continue in both markets in Germany and in Sweden. It doesn't stop on 30 June. Of course, we took some analysis to derive what this might mean, and we came to the conclusion that the financial impact from lower generation on the German, also on the Swedish side, will continue to appear for a certain period of time, at least for Q3. This has been incorporated into our internal forecasts and therefore also into our guidance. Later the year, the hydro conditions might come back to normality.
Christian Barr: Question one and two. The first question, if I got it correctly, was a question regarding our guidance, EUR 1.1 to EUR 1.3 billion, and to which extent a hydro risk, the current severe situation around the drought is incorporated. As I said in the question before, we are considering and forecasting that the drought might continue in both markets in Germany and in Sweden. It doesn't stop on 30 June. Of course, we took some analysis to derive what this might mean, and we came to the conclusion that the financial impact from lower generation on the German, also on the Swedish side, will continue to appear for a certain period of time, at least for Q3. This has been incorporated into our internal forecasts and therefore also into our guidance. Later the year, the hydro conditions might come back to normality.
Speaker #2: And this has been incorporated into our internal forecast and therefore also into our guidance. Later the year, this might come back to the hydro conditions might come back to normality.
Speaker #2: As I said in the previous question, we are considering and forecasting that the drought might continue in both markets, in Germany and in Sweden.
Speaker #2: In terms of the cash flow, you're right. Cash flow at the moment operational cash flow with 2 billion stands really on a very, very high level.
Speaker #2: It doesn't stop on the 30th of June. And, of course, we took some analysis to derive what this might mean, and we came to the conclusion that the financial impact from lower generation on the German and also on the Swedish side will continue to appear for a certain period of time, at least for Q3. This has been incorporated into our internal forecast and therefore also into our guidance.
Speaker #2: Unusually high level. Which is driven by two effects as we explained in our speech and on our slides. First, we had lower gas storage levels.
Speaker #2: This is around 500 million and another also reducing receivables over the course of the year by another 4 to 500 million which drives it up now to 2 billion euros which is unusually high.
Speaker #2: Later the year, this might come back to the hydro conditions might come back to normality. In terms of the cash flow, you're right, cash flow at the moment operational cash flow with 2 billion stands really on a very, very high level.
Speaker #2: It's seasonal to a certain extent seasonal normally. But it's very high and we expect this to unwind over the course of the years as we said.
Christian Barr: In terms of the cash flow, you are right. Cash flow at the moment, operational cash flow with EUR 2 billion stands really on a very high level, unusually high level, which is driven by two effects as we explained in our speech and on our slides. First, we had lower gas storage levels. This is around EUR 500 million, and another also reducing receivables over the course of the year by another EUR 400 to EUR 500 million, which drives it up now to EUR 2 billion, which is unusually high. It is, to a certain extent, seasonal normally, but it is very high, and we expect this to unwind over the course of the years, as we said, and bring it back because on the first hand, we, as usual, by end of the year, wholesale customers, our Stadtwerke customers, continue to consume more. This means receivables move up again. We build up working capital.
Christian Barr: In terms of the cash flow, you are right. Cash flow at the moment, operational cash flow with EUR 2 billion stands really on a very high level, unusually high level, which is driven by two effects as we explained in our speech and on our slides. First, we had lower gas storage levels. This is around EUR 500 million, and another also reducing receivables over the course of the year by another EUR 400 to EUR 500 million, which drives it up now to EUR 2 billion, which is unusually high.
Speaker #2: An unusually high level, which is driven by two effects, as we explained in our speech and on our slides. First, we had lower gas storage levels.
Speaker #2: And bring it back because on the first hand we as usual by end of the year wholesale customers our Stadtwerke customers continue to consume more.
Speaker #2: This means receivables move up again. We build up working capital and secondly we do assume as we already do that we have to refill the storages and will refill the storages at the moment as we said in many, many speeches the incentives from the market is not as high as it should be but also this is a topic which will unwind over the course of the year.
Speaker #2: This is around €500 million, and another also reducing receivables over the course of the year by another €400 to €500 million, which drives it up now to €2 billion, which is unusually high.
Speaker #2: It's seasonal to a certain extent—seasonal, normally. But it's very high, and we expect this to unwind over the course of the years, as we said.
Christian Barr: It is, to a certain extent, seasonal normally, but it is very high, and we expect this to unwind over the course of the years, as we said, and bring it back because on the first hand, we, as usual, by end of the year, wholesale customers, our Stadtwerke customers, continue to consume more. This means receivables move up again. We build up working capital.
Speaker #2: Therefore our operational forecast which I said before will be the cash conversion rate will be slightly below 1 in comparison to the EBITDA.
Speaker #2: And bring it back, because on the one hand, as usual by the end of the year, wholesale customers—our Stadtwerke customers—continue to consume more.
Speaker #2: This means receivables move up again. We build up working capital, and secondly, we do assume—as we already do—that we have to refill the storages, and we will refill the storages. At the moment, as we said in many, many speeches, the incentives from the market are not as high as they should be. But also, this is a topic which will unwind over the course of the year.
Speaker #5: Thank you.
Christian Barr: Secondly, we do assume, as we already do, that we have to refill the storages and will refill the storages. At the moment, as we said in many speeches, the incentives from the market is not as high as it should be, but also this is a topic which will unwind over the course of the year. Therefore, our operational forecast, which I said before, the cash conversion rate will be slightly below one in comparison to the EBITDA.
Christian Barr: Secondly, we do assume, as we already do, that we have to refill the storages and will refill the storages. At the moment, as we said in many speeches, the incentives from the market is not as high as it should be, but also this is a topic which will unwind over the course of the year. Therefore, our operational forecast, which I said before, the cash conversion rate will be slightly below one in comparison to the EBITDA.
Speaker #6: As a reminder, if you have any questions or follow-up, please press star one. Our next question comes from the line of Ercan Aisik. From LBBW, please go ahead.
Speaker #7: Good morning. Thanks for taking my question. I have one question regarding your green generation. Could you please quantify the earnings impact of the unplanned outage of your Oscarham nuclear power plant?
Speaker #2: Therefore, our operational forecast, which I mentioned before, is that the cash conversion rate will be slightly below 1 in comparison to EBITDA.
Speaker #5: Thank you.
Louis Boujard: Thank you.
Louis Boujard: Thank you.
Speaker #1: Yes, I'm happy to do so. So the prolonged maintenance outage is Oscarham 3 and additional standstill at minority owned plants resulted in a burn in the middle double digit million EBITDA number.
Speaker #6: As a reminder, if you have any questions or follow-up, please press star one. Our next question comes from the line of Ercan Isik.
Operator: As a reminder, if you have any questions or follow-up, please press star one. Our next question comes from the line of Erkan Ayçiçek from LBBW. Please go ahead.
Operator: As a reminder, if you have any questions or follow-up, please press star one. Our next question comes from the line of Erkan Ayçiçek from LBBW. Please go ahead.
Speaker #6: From LBBW, please go ahead.
Speaker #7: Thank you.
Speaker #7: Good morning. Thanks for taking my question. I have one question regarding your green generation. Could you please quantify the earnings impact of the unplanned outage of your Oskarshamn nuclear power plant?
Erkan Ayçiçek: Good morning. Thanks for taking my question. I have one question regarding your green generation. Could you please quantify the earnings impact of the unplanned outage of your Oskarshamn Nuclear Power Plant?
Erkan Ayçiçek: Good morning. Thanks for taking my question. I have one question regarding your green generation. Could you please quantify the earnings impact of the unplanned outage of your Oskarshamn Nuclear Power Plant?
Speaker #6: There are no further questions at this time. I will now turn the call over to Sebastian Veit. Please continue.
Speaker #1: Yes, thank you. And as investors, this will conclude our call for today. Thank you for listening in and asking questions. We're looking forward to our next Uniper analyst and investor call.
Speaker #1: Yes, I'm happy to do so. So the prolonged maintenance outage is Oskarshamn 3, and additional standstill at minority-owned plants resulted in a burn in the mid double-digit million EBITDA number.
Christian Barr: Yes, I am happy to do so. The prolonged maintenance outages, Oskarshamn 3, and additional standstill at minority-owned plants resulted in a burn in the middle double-digit million EBITDA number.
Christian Barr: Yes, I am happy to do so. The prolonged maintenance outages, Oskarshamn 3, and additional standstill at minority-owned plants resulted in a burn in the middle double-digit million EBITDA number.
Speaker #1: Until then, wish you a good remainder of the week and stay safe. Thank you.
Speaker #7: Thank you.
Erkan Ayçiçek: Thank you.
Erkan Ayçiçek: Thank you.
Speaker #6: There are no further questions at this time. I will now turn the call over to Sebastian Veit. Please continue.
Operator: There are no further questions at this time. I will now turn the call over to Sebastian Veit. Please continue.
Operator: There are no further questions at this time. I will now turn the call over to Sebastian Veit. Please continue.
Speaker #1: Yes, thank you. And as investors, this will conclude our call for today. Thank you for listening in and asking questions. We are looking forward to our next Uniper Analyst and Investor call.
Sebastian Veit: Yes. Thank you. Dear analysts and investors, this will conclude our call for today. Thank you for listening in and asking questions. We are looking forward to our next Uniper analyst and investor call. Until then, I wish you a good remainder of the week and stay safe. Thank you.
Sebastian Veit: Yes. Thank you. Dear analysts and investors, this will conclude our call for today. Thank you for listening in and asking questions. We are looking forward to our next Uniper analyst and investor call. Until then, I wish you a good remainder of the week and stay safe. Thank you.
Speaker #1: Until then, I wish you a good remainder of the week and stay safe. Thank you.
Speaker #6: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.
Anna Webb: Please wait. The conference will begin shortly.
