Germany’s Uniper SE reported record losses from January to September as it was battered by Russia’s curtailment of natural gas volumes, but management said the firm is on a path to stability with LNG as a stepping stone.

Uniper, Germany’s largest importer of Russian gas, has been navigating a geopolitical and economic crisis since before Russia’s February invasion of Ukraine as direct pipeline flows from Russia’ Gazprom PJSC have gradually dwindled. Uniper reported direct deliveries of gas from Gazprom have completely ended as of August.

During the nine-month period, the firm estimated shortfalls of expected Russian volumes cost it around $9.9 billion and will contribute to roughly $30.7 billion in future losses. The German government has since stepped in with financial bailouts and could soon be a 98.6% stakeholder in the firm after the latest capital injection.

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With the government’s support, CFO Tiina Toumela said Uniper was focused on building a “sound and future-proof business” that removes all risk of volatile Russian gas supplies by 2024. That eventually means exiting all investments in Russia and building energy security in Germany and Europe once the company is on stable footing.

“This includes initially expanding LNG infrastructure and the supply relationship, as well – in the longer term – contributing to the entry into the European hydrogen economy on a broader front,” Toumela said.

Uniper has been an active part of Germany’s plan to increase regasification capacity around the country, procuring a floating storage regasification unit (FSRU) for its developing energy hub at Wilhelmshaven. To support its new import terminal, Uniper has been forging new supply deals with companies like Woodside Energy Group Ltd, which in turn could supply Europe more U.S. LNG from a contract with Commonwealth LNG. That project is not yet sanctioned but is targeting mid-2026 to start loading cargoes.

Uniper and its German counterpart, RWE AG, also have agreed to cooperate on supplying Germany’s new FSRUs with LNG cargoes. RWE signed a preliminary long-term agreement with Sempra Infrastructure earlier this year for offtake from its developing Port Arthur LNG project in Texas. Sempra expects to reach a final investment decision for the export project early next year.

In the long-term, management said Uniper is looking to hydrogen as a future fuel to shore-up energy and climate security, with plans to meet 10% of German demand by 2030. But, in the meantime, it will need far more LNG volumes.

On a call with analysts, Toumela said prices for gas to Europe have provided “comfort” since October as the continent’s gas storage levels have risen, but the firm expects volatility to rise again when it refills storage for the next winter. Competition from Asia “is really the key and this is the part where we are also working heavily with the FSRU terminals and getting the supply” in place, Toumela said.

While Germany has been meeting heightened gas storage requirements, in part, with massive imports of LNG, Uniper’s new dependence on mostly U.S. exports has brought its own volatility.

The firm, which has a long-term offtake agreement with Freeport LNG, took a $335 million hit to its global commodity portfolio year-to-year because of the Texas plant’s outage since July. Toumela said the firm missed three previously expected cargoes during the third quarter, and “as those were previously hedged, we needed to buy the volumes back with significant losses.”

Along with financial implications, Uniper also reported its gas storage filling was down an average of 7% for the nine-month period, and its carbon emissions had risen 13%. German regulators have been allowing the country’s utilities to restart coal-fired plants in an effort to meet industrial and household demand.

Uniper reported a net loss during the nine month period of $39.37 billion (minus $107.38/share), compared with a net loss of $4.65 (minus $12.87) in the year-prior period.