E.ON cuts value of Nord Stream 1 stake by more than half




  • In Business
  • 2022-08-10 05:07:34Z
  • By Reuters
 

FRANKFURT (Reuters) -E.ON, Europe's largest operator of energy networks, on Wednesday cut the value of its stake in the Nord Stream 1 gas pipeline by around 700 million euros ($715 million), citing "heightened uncertainty" over the impact of Russia's war on Ukraine.

E.ON in March said that the 15.5% stake, held indirectly via the firm's pension fund, has a book value of 1.2 billion euros, translating into a 58% decline of the participation's value.

"The current energy crisis finally makes clear that Europe needs to transform its energy system. To be independent of Russian gas. To ensure supply security," Chief Executive Leonhard Birnbaum said in a statement.

The value decrease was recognised in equity in other non-operating income, E.ON said, adding that the situation "indicated no triggering events that would necessitate impairment charges on non current assets".

E.ON had in March warned of a value adjustment of the stake in Nord Stream 1, which is majority-owned by Gazprom, saying it would negatively impact pension provisions and net debt but not trigger liquidity issues.

The company also reported first-half results which showed a 15% decline in first-half adjusted core profit (EBITDA) to 4.06 billion euros, sticking to its 2022 outlook for adjusted EBITDA of 7.6 billion to 7.8 billion euros.

($1 = 0.9792 euros)

(Reporting by Christoph SteitzEditing by Paul Carrel)

COMMENTS

More Related News

CORRECTED-Pressure in defunct Nord Stream 2 pipeline plunged overnight - operator
CORRECTED-Pressure in defunct Nord Stream 2 pipeline plunged overnight - operator

Pressure in the Nord Stream 2 undersea gas pipeline from Russia to Germany dropped from 105 to 7 bars overnight, a spokesperson for the pipeline's operator...

Czech Opposition Wins Vote in Large Cities as Crisis Hits
Czech Opposition Wins Vote in Large Cities as Crisis Hits
  • World
  • 2022-09-25 15:20:13Z

(Bloomberg) -- Most Read from BloombergBank of England Says Paper Banknotes Only Good for One More WeekJohn Paulson on Frothy US Housing Market: This Time Is...

Europe
Europe's energy crisis, explained

Europe is enduring one of the worst energy crises of our time. How did it get here, and what can we expect?

Fracking: Jacob Rees-Mogg faces protests in Somerset
Fracking: Jacob Rees-Mogg faces protests in Somerset

The Business Secretary is facing anger in his home county after lifting a ban on fracking.

You really don
You really don't understand how bad the energy crisis could to get in Europe this year

Europe's energy crisis is already here, but these might still be the good days.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • poppy playtime
    (2022-08-10 10:28:04Z)

    This forum is amazing and there is a lot of useful content here. Companies can use this content to further improve the quality of disposable nitrile gloves although they have not received any complaints about them yet. However, there is still room for improvement.

    REPLY
  • bitcoincasino
    (2022-08-11 02:28:22Z)

    I am very impressed with your writing bitcoincasino I couldn't think of this, but it's amazing! I wrote several posts similar to this one, but please come and see!

    REPLY
  • Gilbert Galvan Jr Coat
    (2022-09-01 08:04:13Z)

    Hey. Excellent website!! Excellent, man… Fantastic… I’ll save this website and subscribe to the feeds… I’m delighted to find so much useful information in this article. Thank you for sharing this information!

    REPLY
  • Mens Striped Leather Jacket
    (2022-09-05 06:42:34Z)

    Great Content. I like the way of your presentation. keep sharing more.

    REPLY
  • Mens Red Leather Quilted Jacket
    (2022-09-26 11:46:27Z)

    I found this an informative and interesting post so i think so it is very useful and knowledgeable.

    REPLY

Top News: Business