Wärtsilä signed an agreement with Teollisuuden Voima Oyj (TVO) in Finland for the delivery of nine standby diesel generators and their auxiliary systems to the Olkiluoto 1 and 2 plants in 2013. In October 2020, TVO initiated arbitration proceedings against Wärtsilä concerning the time schedule of the installation and commissioning of the project.
During the third quarter of 2022, the arbitral tribunal resolved the claims presented by the parties concerning the delivery schedules, additional costs, and liquidated damages for delay. As a result of the arbitration decision, Wärtsilä will need to further accelerate the installation and commissioning timetable and has now concluded a thorough analysis of the project completion and its cost impact.
Consequently, Wärtsilä’s Energy business comparable operating profit in Q4/2022 will be impacted by EUR 40 million cost provisions related to the Olkiluoto project.