November 11, 2019 / 8:15 PM / 3 months ago

British power capacity market a boon for Germany's Uniper

FILE PHOTO: A logo of German energy utility company Uniper SE is pictured in the company's headquarter in Duesseldorf, Germany, March 8, 2018. REUTERS/Thilo Schmuelgen

FRANKFURT (Reuters) - Germany’s Uniper (UN01.DE) on Monday lifted its full-year earnings outlook, seeing itself a beneficiary of the revival of the British power capacity market programme.

The British government last month gave the go-ahead to reinstate the power capacity market scheme after the European Commission approved it, compensating providers for making output capacity available regardless of whether electricity is delivered.

Uniper, which opposes a takeover bid by Finnish state-owned company Fortum (FORTUM.HE), said it was now targeting 750 million euros ($827 million) to 950 million euros in 2019 adjusted earnings before interest and tax (EBIT), up from the 550-850 million it previously predicted.

“The increase is mainly due to the reinstallment of the UK capacity market,” it said in a statement late on Monday.

The utility, which is due to release third-quarter earnings on Tuesday, said there was now “some possibility” for an increased dividend proposal for 2019.

Reporting by Ludwig Burger; Editing by Tom Brown

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