E.ON Cuts Value of Stake in Nord Stream Pipeline
August 10 2022 - 1:40AM
Dow Jones News
By Giulia Petroni
E.ON SE on Wednesday said that it has cut the value of its stake
in the Nord Stream pipeline amid increased uncertainties due to the
war in Ukraine.
The Austrian oil-and-gas major said the valuation of this
investment held in pension plan assets at June 30 declined by
around 700 million euros ($714.9 million) compared with Dec. 31,
2021. The value decrease was recognized directly in equity in other
comprehensive income as "the situation indicated no triggering
events that would necessitate impairment charges on noncurrent
assets," it said.
"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 Officer Leonhard
Birnbaum said during the release of first-half results.
In March, E.ON warned of a downgrade in the valuation of its
15.5% stake in Nord Stream that would hit pension provisions. The
pipeline, which connects Russia's Siberian gas fields with Germany
through the Baltic Sea, is owned by Russian state company Gazprom
PJSC.
Write to Giulia Petroni at giulia.petroni@wsj.com
(END) Dow Jones Newswires
August 10, 2022 02:25 ET (06:25 GMT)
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