* Sees 2017 dividend increase of about 15 pct
* Adj EBITDA up 24 pct in 2016, beats Reuters poll
* Shares reach highest level since spin-off from E.ON
* 2017 profits seen down on non-recurring effects
(Adds shares record, analyst comment)
By Christoph Steitz and Tom Käckenhoff
DUESSELDORF, Germany, March 9 German energy
group Uniper on Thursday flagged a higher dividend for
2017, its first year of full independence from former parent
E.ON, adding cost cuts would continue in what it
called a challenging environment.
Shares rose as much as 3.1 percent to 14.46 euros, their
highest level since Uniper was spun off from E.ON in September,
with investors anticipating a higher payout this year and
The spin-off was a response to years of falling wholesale
power prices that have drastically cut the value of fossil-fuel
based power plants that now belong to Uniper, with E.ON keeping
more promising networks, renewables and retail assets.
Uniper confirmed plans to pay a dividend of 0.55 euros per
share for 2016 and said it eyed an increase of about 15 percent
for 2017, which suggests a payout of 0.63 euros. This is higher
than the 0.59 euro average forecast in a Reuters poll.
"This was another solid set of results from Uniper, with
encouraging guidance on the dividend front," said Deepa
Venkateswaran, senior analyst at Bernstein.
Uniper's shares have gained 40 percent since the spin-off,
with investors pointing to successful efficiency measures at its
struggling power generation business, where core earnings fell
Uniper, in which E.ON still owns 46.65 percent, aims to save
400 million euros by the end of 2018 from a 2015 baseline, half
of which it has already achieved by end-2016 by eliminating
overlap and cutting administration.
Impairments on power plants and gas storage assets, under
pressure from low wholesale power prices, triggered a full-year
net loss of 3.2 billion euros, and the group said it could not
rule out another loss this year.
"The situation in our markets remains a real challenge. The
measures we've announced are absolutely necessary," Uniper Chief
Executive Klaus Schaefer told journalists at the group's annual
Annual core earnings (EBITDA) were up 24 percent at 2.12
billion euros ($2.2 billion), beating the 2.04 billion average
forecast, but only due to a one-off boost from renegotiated gas
supply contracts with Russia's Gazprom.
This will not be repeated this year and therefore Uniper
expects a decline in adjusted EBITDA of up to a quarter in 2017.
($1 = 0.9497 euros)
(Additional reporting by Vera Eckert; Editing by Maria