Finnish utility Fortum on Thursday announced a net loss for the second quarter of 7.4 billion euros ($7.4 billion).
Photo by RONI REKOMAA / Lehtikuva / AFP via Getty Images
Finnish utility Fortum on Thursday posted a second-quarter net loss of 7.4 billion euros ($7.4 billion), due to losses at its German subsidiary Uniper, and said it may have to increase liquidity reserve if electricity prices continue to rise.
Uniper, the biggest victim of the European energy crisis to date, is being hit by the cost of trying to replace Russia’s reduced gas supply and earlier this month reported a loss of 12.3 billion euros for
first six months.
Fortum is also currently assessing the possible effects of a new decree in Russia that restricts investors in so-called “unfriendly countries” from divesting in key energy projects, the company said in a statement.
In May, the company said it was leaving Russia and was looking for buyers for its assets there.
“As we noted earlier, these processes can take time to complete, and in the energy sector this often means having to be approved by the Government Commission in Russia,” said Fortum, the department’s chief executive officer. owned 51% of the Finnish state, said in a statement.