Wärtsilä 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.
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Wärtsilä in brief
Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasising sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2017, Wärtsilä’s net sales totalled EUR 4.9 billion with approximately 18,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.