German Government-owned utility Uniper has been ordered to pay a €550m ($602m) arbitration fine to a Europe-based LNG supplier.

In accordance with International Chamber of Commerce guidelines, the arbitration proceedings between a Uniper subsidiary and the undisclosed European energy company began in early 2021.

The proceedings relate to the pricing provisions of a long-term LNG supply agreement, which concluded before the company was spun-off from E.ON in 2016 and has since expired.

In a statement, Uniper said: “A payment to the opposing party of an estimated €550m related to the retroactive re-pricing of the long-term agreement would be due under the terms of the award.”

Uniper's annual performance will be impacted by the additional arbitration payment, the company said, without providing a financial outlook.

For the entire fiscal year 2023, Uniper stated in October that it anticipates adjusted earnings before interest and taxes of between €6bn and €7bn and adjusted net income of between €4bn and €5bn.

The company is evaluating the rationale behind the ruling and examining every potential legal path to challenge the judgement.

Last year, the company filed a lawsuit against Russia’s Gazprom, which had been its primary gas supplier, reported Reuters.

Also in 2022, Uniper had to be bailed out by the German Government after being pushed to the brink of collapse during the energy crisis.

Earlier in 2023, Uniper reached an agreement to sell the entire stake in its United Arab Emirates (UAE)-based crude oil processing and marine fuel trading business.

Under the agreement, a consortium of Montfort and Sheikh Ahmed Dalmook Al Maktoum's private office would acquire Uniper’s UAE assets trading under the name Uniper Energy DMCC.