Company Trend Analysis - Unipro (Uniper/E.ON) - Q1 2018 - DEC 2017
Unipro (formerly E.ON Russia): A Difficult Future
In June 2016, E.ON Russia changed its name to Unipro, as part of the E.ON's general restructuring that saw the company's fossil fuel generation being spun-off into a new company, Uniper. Unipro is now a subsidiary of Uniper, while E.ON focuses its business on renewables, and nuclear power generation. Paired with the deteriorating outlook for the utility's operations in Russia, the outlook for Unipro remains uncertain to bleak, particularly due to the deteriorating economic circumstances and continued currency volatility in Russia.
With the rouble suffering from long-term weakness as oversupply in the oil markets exerts downward pressure on the currency. We believe that this will limit growth and curb earnings at Unipro, and, in turn, will heavily affect E.ON's Uniper that receives a large share of its earnings through Unipro's EBITDA.
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