Frankfurt (Reuters) –E.ON is Europe’s largest energy network operator. On Wednesday, it cut the value of its stake in the Nord Stream 1 gas pipeline by about $715 million, citing “increased uncertainty” about how Russia’s war on Ukraine will affect the project.
In March, E.ON said that the 15.5% stake, which is held indirectly through the company’s pension fund, has a book value of 1.2 billion euros. This means that the participation value has gone down by 58%.
“Europe needs to change its energy system, and the current energy crisis makes it clear that it needs to do so. to stop getting gas from Russia. To make sure supplies are safe, “In a statement, CEO Leonhard Birnbaum said the following.
E.ON said that the drop in value was counted as equity in other non-operating income and that there were “no events that would have caused impairment charges on noncurrent assets.”
In March, E.ON said that a change in the value of its stake in Nord Stream 1, which is mostly owned by Gazprom (MCX: GAZP), would hurt pension provisions and net debt but not cause liquidity problems.
The company also released results for the first half of the year. The adjusted core profit (EBITDA) for the first half fell by 15% to 4.06 billion euros, but the company still expects adjusted EBITDA to be between 7.6 billion and 7.8 billion euros in 2022.
($1 = 0.9792 euros)
