Technology group Wärtsilä suspended all deliveries, sales, orders, and bidding to Russia following the invasion of Ukraine, and is making provision for approximately a €200 million shortfall in its Q1 financial reporting.
‘Wärtsilä strongly condemns the war in Ukraine. Human rights, safety and prosperity are very important for Wärtsilä, and we value a peaceful and stable business environment wherever we operate,’ said VP Investor Relations Hanna-Maria Heikkinen in a statement issued by the company.
‘We are complying with all current and will comply with all future trade sanctions applicable to our operations.’
According to Wärtsilä, this €200 million provision includes approximately €75 million of impairment of Voyage related goodwill and intangible assets, approximately €50 million of impairment related to assets in Russia and approximately €75 million of 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. All these actions regarding our 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 million,‘ the company stated.
‘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. During this process our priority continues to be the safety and wellbeing of our employees.’
