The value of E.ON’s stake in the Nord Stream 1 gas pipeline has been reduced by roughly EUR 700 million ($715 million) due to “heightened uncertainty” on the effects of Russia’s conflict in Ukraine. E.ON is the largest energy network operator in Europe, Reuters reported.
E.ON (EONGn.DE) reported in March that the indirect pension fund holding of 15.5% of the company’s shares had a book value of EUR 1.2 billion, a 58% decrease in the value of the participation.
“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 recognized 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 previously issued a warning about a potential value adjustment of Nord Stream 1in March, stating that it would negatively affect pension provisions and net debt but not cause liquidity problems.
A 15% fall in first-half adjusted core earnings (EBITDA) to EUR 4.06 billion was also disclosed by the corporation, maintaining its forecast for adjusted EBITDA of EUR 7.6 billion to EUR 7.8 billion for 2022.