Fortum Subsidiary Uniper Writes Down Its Receivable In Nord Stream 2
Uniper announced Monday 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.