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August 9, 2022
SADC Mining & Construction News
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Russia: Metso Outotec to book a non-recurring charge of EUR 150 million related to winding down its business in Russia

Metso Outotec has been winding down its business operations and customer contracts in Russia during the second quarter, in line with the company’s disclosure in its January-March 2022 interim report. At the end of March 2022, Metso Outotec had an order backlog of EUR 479 million to Russia. Around EUR 315 million was originally expected to be recognized as sales in 2022, of which approximately EUR 215 million was to non-sanctioned customers at the end of March.

After having made deliveries worth EUR 67 million to non-sanctioned Russian customers during the second quarter, Metso Outotec has decided to make a provision for its remaining exposure in Russia. The non-recurring charge is expected to total EUR 150 million and includes the wind-down and restructuring costs. These will be booked as a non-recurring adjustment in the company’s second quarter financials, and therefore will have no impact on the adjusted EBITA. The negative impact of the wind down in the Group’s order backlog at the end of June is approximately EUR 380 million.

Metso Outotec will continue to monitor the situation closely, as further changes are expected in the sanctions and export control restrictions, as well as in the availability of banking facilities and logistics.

A more comprehensive update will be published in Metso Outotec’s Half-Year report on July 22, 2022.

Further information:

Eeva Sipilä, CFO, tel. +358 20 484 3010, email: eeva.sipila@mogroup.com
 

Distribution:

Nasdaq Helsinki Ltd

Main media

www.mogroup.com

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