German windfall tax a 'missed upside' rather than negative on energy cos - Stifel

7C Solarparken AG

06/09/2022 13:13

** Stifel sees a "missed upside" rather than a net negative
for companies that will be affected by Germany's new windfall
tax, as selling prices should remain below pre-pandemic levels
even after taking the new tax into account
    ** German Chancellor Olaf Scholz said on Sunday the
government will use income from windfall taxes to lower
end-consumer prices for gas, oil and coal  urn:newsml:reuters.com:*:nS8N2Y20F5
 urn:newsml:reuters.com:*:nL1N3071KW
    ** Stifel expects the tax to be paid by electricity
producers to range between EUR 67 and EUR 167 per MWh
    ** It sees 7C Solarparken  HRPKk.DE  as the most impacted
companies, as 89% of the group's capacity is located in Germany
    ** It adds that while the firm has entered into an
electricity price swap agreement for 93 MW at EUR 149.5 per MWh,
the broker does not know if hedge contracts will be impacted by
the windfall tax
    ** The broker expects E.ON  EONGn.DE  to be the least
affected, as the measure would only impact the Isar 2 nuclear
power plant, should nuclear be extended past 2023

 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))