E.ON cuts investment value in Nord Stream 1 by around £600m | E.ON

energy network operator E.ON has cut the value of its investment in the Nord Stream 1 gas pipeline by around €700m (£592m) as a result of ‘increased uncertainty’ following Russia’s invasion of Ukraine.

The German utility company said in March it held a 15.5% stake. E.ON As it is held indirectly via a pension fund and has a book value of €1.2bn, a revaluation would reduce the value by 58%.

A company called Nord Stream owns and operates two pipelines, each 1,224 km (761 miles) long, that carry natural gas from Russia to Russia. Germany.

Germany stopped the authentication process In late February, days before Russia fully invaded its neighbor, after Moscow gave its approval to the self-proclaimed republics of Luhansk and Donetsk in eastern Ukraine for the controversial Nord Stream 2 pipeline.

Leonhard Birnbaum, CEO of E.ON, said: Be independent from Russian gas. This is to ensure security of supply. ”

In its final annual earnings release in March, E.ON warned of “valuation risks” in investments involving shares in Nord Stream 1, which is majority-owned by Russian state energy company Gazprom.

The flow of gas to Europe through Nord Stream 1 is Reduced to about 20% of normal pipeline capacity Half of the volume delivered in the last few weeks since services resumed after maintenance work.

Gazprom blamed the reduction in gas flow on technical problems with the pipeline’s turbines, but the German government dismissed this explanation as a hoax.

E.ON described the energy market situation as “tense”, adding Birnbaum: energy conversion. ”

E.ON, the UK’s largest energy supplier with about 3.8 million customers, also reported January-June results, with first-half adjusted profit before tax down 15% to 4.06 billion. became the euro. He maintained his outlook for full-year 2022 adjusted pre-tax profit between €7.6 billion and €7.8 billion.