Wärtsilä to write-off approximately EUR 200 mln related to assets and business operations in Russia, reads an official release.
Wärtsilä suspends all deliveries
After the beginning of Russia’s operation on Ukraine, Wärtsilä immediately suspended all deliveries, sales, orders, and bidding to Russia. The company is complying with all current and will comply with all future trade sanctions applicable to its operations, according to the company’s release.
In the current environment, it is not viable for Wärtsilä to maintain activities in Russia and therefore has decided to further downscale its Russian operations. Adjusting the operations will be done in accordance with local regulations.
As a result of these steps Wärtsilä will make provisions of approximately EUR 200 million in the Q1 financial reporting. The EUR 200 million provision includes approximately EUR 75 million of impairment of Voyage related goodwill and intangible assets, approximately EUR 50 million of impairment related to assets in Russia and approximately EUR 75 million write-offs related to trade-sanctioned projects and receivables.
The provisions will be included in items affecting comparability and therefore, do not impact comparable operating profit.
Negative impact on operational financials
All these actions regarding the business in Russia will also have a negative impact on Wärtsilä’s operational financials. Russia related activities accounted for approximately 5% of Wärtsilä’s net sales in 2021, of which service net sales was approximately 40 MEUR.
Wärtsilä is a global leader in innovative technologies and lifecycle solutions for the marine and energy markets. The company’s team of 17,000 professionals in more than 200 locations in 68 countries shape the decarbonisation transformation of its industries across the globe. In 2021, Wärtsilä’s net sales totalled EUR 4.8 billion. Wärtsilä is listed on Nasdaq Helsinki.
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Source: Wärtsilä
