Wartsila to Recognise Provisions Related to Nuclear Power Plant Back-up Genset Projects

Wartsila to recognise provisions related to nuclear power plant back-up genset projects

Wärtsilä has conducted a detailed review of its ongoing nuclear power plant projects, following the decision to cease providing emergency back-up equipment to this segment. Based on the findings of the review, two projects have been identified where material additional provisions are required to cover cost overruns and project delays. The allocation of responsibility for the additional costs and delays are in dispute. The provisions, amounting to approximately EUR 70 million, will be recognised in Wärtsilä’s fourth quarter operating result. The negative impact to the result is partially offset by the capital gain from the divestment of the pumps business, which was announced in October.

Prior to exiting the nuclear business, Wärtsilä Energy Solutions’ offering to the segment consisted of emergency generators and auxiliary equipment used to secure power supply for the nuclear plant. The nuclear business represented approximately 1% of Energy Solutions’ net sales in 2017. Wärtsilä remains committed to supporting its customers in the nuclear segment with service activities.

Source: Wartsila
Date: Dec 12, 2018