Germany's E.ON cuts value of Nord Stream 1 stake
Published by Sara Simper,
E.ON, Europe's biggest operator of energy networks, on 9 November said it had almost fully cut the value of its stake in Nord Stream 1, reflecting damage to the pipeline that has made the asset inoperable and whose cause is yet to be determined.
E.ON, in its nine-month report, said the value of the 15.5% stake, which is sitting in its pension fund, was cut by another €400 million (US$403 million) to 0.1 billion, down from 0.5 billion at the end of June.
"Among the reasons for this are greater uncertainty amid the current situation and, since 26 September, damage to both of Nord Stream 1's pipelines whose cause is as yet unclarified," the company said.
Nord Stream 1 and Nord Stream 2 were damaged in September, and the gas transport infrastructure has been a focal point in the wider row between the West and Moscow. NATO Secretary-General, Jens Stoltenberg has called the damage an act of sabotage.
News about the value adjustment came alongside E.ON's results for the first nine months of 2022, which showed a 3% decrease in adjusted core profit (EBITDA) to €6.1 billion. Adjusted net profit was also down 3% at €2.1 billion.
The company still stuck to its 2022 outlook, expecting adjusted EBITDA of €7.6 billion to €7.8 billion and an adjusted net income of €2.3 billion to €2.5 billion.
Image: copyright © Airbus DS 2022
Read the article online at: https://www.worldpipelines.com/business-news/14112022/germanys-eon-cuts-value-of-nord-stream-1-stake/
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