Uniper cuts dividends amid concerns over market voltality

German utility Uniper proposed on Monday a decrease in the year-on-year dividend by almost 95 percent to preserve cash amid high volatility on the energy markets, the Russian-Ukraine situation and the increasing momentum of the European energy transition.

“Given the continued high volatility on the energy markets, the geopolitical situation and the increasing momentum of the European energy transition, Uniper is placing a stronger focus on liquidity and investment capacity, which is reflected in the dividend proposal and supported by Fortum Oyj, Uniper's major shareholder,” the German utility said in a statement.

Uniper said it would propose a dividend of 7 euro cents (8 dollar cents) per share for 2021. In 2020, the utility paid 1.37 euros per share.

The company will propose the amended dividends in their annual general meeting on May 18. If the plan goes through, the company will pay approximately €26 million compared to €501 million in 2020.