E.ON Cuts Value of Stake in Nord Stream Pipeline

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 [e-mail]

(END) Dow Jones Newswires

August 10, 2022 02:25 ET (06:25 GMT)

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