Germany’s Uniper seeks buyer for UAE oil refinery to raise cash

Troubled German utility Uniper is seeking buyers for an oil refinery in the United Arab Emirates as the German utility seeks to stem a €40 billion loss from being forced to buy gas to replace lost Russian supplies.

The news saw the company’s battered shares jump more than 18 per cent on Friday.

The company has received interest from several parties, including Vitol Group, and a sale could be agreed as early as this year, according to people familiar with the matter who asked not to be identified because the discussions are private. Uniper produces shipping fuel at the refinery with a capacity of 80,000 barrel a day located in the UAE port of Fujairah.

Uniper is one of the energy firms hit hardest by Moscow’s gas supply cuts, requiring a mammoth rescue package from the German government that will lead to its nationalisation by the end of the year. As Germany’s largest importer, its survival is considered essential for the country’s energy system, with failure potentially having a domino effect on the sector. Asset disposals could help the company raise some much-needed cash. – Bloomberg