2024-02-14 08:56:48 ET
Summary
- Uniper, a European utility company, has shown strong financial performance with positive earnings and net income in its latest results.
- The company has successfully avoided drawdown on its credit facilities and has commissioned a new gas-fired power plant, indicating its stability and future growth potential.
- Uniper is undergoing a transformation towards green energy production, making it an attractive long-term investment opportunity.
Dear readers/followers,
I have not made any sort of secret about the fact that I'm very negative about the Uniper (UNPRF) deal that Fortum decided to execute a few years back. The divestment, following a purchase using Fortum's massive cash pile at the time, was a major strategic failure in the entire utility sector in Europe. Fortum used to be one of my largest utility stakes - today it's minimal. This move by the company was easily one of the most frustrating experiences in my career as an investor - not because of a loss, but because of the lower appeal of Fortum, which was once as solid a utility as you could hope for.
In my last article which you can find here , I considered Uniper to be a doubtful investment and gave it a "HOLD". The visibility for the company going forward, while the assets were attractive, was something to be dubious about. I don't doubt that the assets have great value, especially in this environment, where the cracks in the renewable foundation that Europe has been speeding towards have become clearer than ever before....
Read the full article on Seeking Alpha
For further details see:
Uniper: Why I'm At A Continued 'HOLD' For This Company