German energy firm Uniper recognized an impairment loss of 987 million euros ($1.075 billion) from the Nord Stream 2 gas pipeline project between Russia and Germany that was halted as a result of Russia's invasion of Ukraine, the Dusseldorf-based energy generation and the trading company announced Tuesday.
Uniper said the book value results from the loans originally provided to Nord Stream 2 of 695 million euros, plus the current amount of accrued interests of 292 million euros. The company also backed its financial outlook.
The non-operating impairment loss will impact the consolidated IFRS-result in the first quarter of the current financial year, but will not affect the adjusted earnings figures. Going forward, Uniper said it will stop accruing the related interest income of around 100 million euros per year.
While condemning the Russian invasion of Ukraine, the company noted that the divestment process of its Russian unit Unipro has been halted for the time being due to the current situation. The process will be restarted as soon as it is feasible.
Uniper is the majority owner of Russian company PAO Unipro with 83.73%. The company started the divestment process at the end of last year. Unipro operates five power plants with a total capacity of over 11 gigawatts in Russia with its approximately 4,300 employees.
Uniper also said it will not make any new investments in Russia and will not transfer any funds to Unipro until further notice.
