Fortum subsidiary Uniper writes down its receivable in Nord Stream 2 and gives further details on its Russian businesses
FORTUM CORPORATION INVESTOR NEWS 7 MARCH 2022 AT 23:20 EET
Fortum’s subsidiary Uniper has on 7 March 2022 disclosed additional information regarding its Russia business and related strategy execution. This information supplements Fortum’s statement on 3 March 2022 on the Group’s Russian business.
Fortum writes down its receivable in the Nord Stream 2 project
Uniper has today announced that it has decided to write down its full outstanding receivable related to the Swiss registered company Nord Stream 2 AG, which is the project company for the Nord Stream 2 project.
Uniper is a financing partner in the project company and has a loan receivable of EUR 987 million which comprises both loan and accrued interest. Following the impairment, Fortum will no longer record the related interest income of approximately EUR 100 million annually.
The impairment will be recorded in Fortum’s first quarter 2022 results in other financial items -net, but will be adjusted and will not affect the comparable net profit.
Uniper is preparing for a possible divestment of its Russian subsidiary Unipro
As part of Fortum Group’s strategy to reduce its thermal exposure in Russia, Uniper has been preparing a possible divestment of its separately listed Russian subsidiary Unipro (ownership 83.7%). Due to the current circumstances in Russia, the process has been put on hold for the time being.
Furthermore, Uniper has announced that it will not make any new investments in Russia and will not transfer any funds to Unipro until further notice.
Diversification of fuel supplies; Not entering into new long-term supply contracts for Russian natural gas
Uniper also announced that it will not extend coal procurement contracts after they expire nor will it enter into new long term gas contracts with Russian suppliers. However, Uniper will continue with the existing, long-term gas import contracts from Russia as they play an important role in securing heating for German households and gas for industrial processes in Europe. Uniper has also taken measures to diversify its fuel supplies and to prepare for potential short-term interruptions of gas flows from Russia.
In order to further diversify its portfolio, Uniper has resumed its plans of building an LNG terminal in Wilhelmshaven, Germany, as announced in Fortum’s investor news on 3 March 2022.
Uniper’s full corporate press release of 7 March 2022 can be read at their website.
Fortum’s statement on Group’s business in Russia of 3 March 2022 can be found at www.fortum.com/about-us/newsroom.
Fortum Corporation
Ingela Ulfves
Vice President, Investor Relations and Financial Communications
Further information:
Fortum News Desk +358 40 198 2843
Fortum
Fortum and Uniper form a European energy group committed to enabling a successful transition to carbon neutrality for everyone. Our 50 gigawatts of power generating capacity, substantial gas import and storage operations, and our global energy trading business enable us to provide Europe and other regions with a reliable supply of low-carbon energy. We are already Europe’s third largest producer of CO2-free electricity, and our growth businesses focus on clean power, low-carbon energy, and the infrastructure for tomorrow’s hydrogen economy. In addition, we design solutions that help companies and cities reduce their environmental footprint. Our 20,000 professionals and operations in 40 countries give us the skills, resources, and reach to empower the energy evolution toward a cleaner world. fortum.com; uniper.energy
