Uniper hedges hydroelectric power sales up to 2020
Hedge rates of forward production volumes, to the extent that companies publish them, are tracked by traders and analysts
DUESSELDORF, Germany: German utility Uniper hedged more than 85 percent of hydropower production in Germany for 2019 and over 80 percent for 2020 at prices below current market rates, and none for 2022, slides released for an analyst call on Tuesday showed.
* The company’s forward hedges of its Swedish nuclear and hydropower for the same three years comprised over 70 percent, over 55 percent and over 5 percent of planned output respectively, the slides showed
* Hedge rates of forward production volumes, to the extent that companies publish them, are tracked by traders and analysts
* They use them to track earnings, to assess future volumes tied up with counterparties, and the value of forward production
* Uniper locked in the German hydro output at prices for 2019 at 22-26 euros ($24.82-29.34) per megawatt hour (MWh), the slides showed. Those for 2020 were at 34-38 euros
* Achieved prices from hydro and nuclear operations in Sweden for the three years were 22-26 euros (2019), 24-28 euros (2020) and 25-29 euros (2021) per MWh
* The German wholesale price for round-the-clock power delivered in 2020 is at around 48 euros/MWh, Refinitiv Eikon data shows. Prices are holding up well after sustained rallies on firm fuel and carbon prices in 2018
* German prices serve as benchmarks for the European market
Source: reuters
