By Ed Frankl 
 

ABB Ltd. said Friday that it will take a $325 million third-quarter provision regarding remaining matters related to the Kusile power-station project in South Africa.

The Switzerland-based engineering company previously agreed to pay around $100 million in 2020 to power company Eskom to settle a probe into improper payments and compliance issues over the coal-fired power plant about 100 kilometers--roughly 60 miles--west of Johannesburg

ABB said it will now take a $325 million nonoperational provision, which will be reflected in income from operations in the third quarter, with a similar cash-flow impact expected in subsequent quarters.

It said it will continue to cooperate fully with the respective authorities and hopes to reach a final settlement in the near term.

However, the company said it doesn't believe it will need to take any further material provisions related to Kusile.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

September 30, 2022 02:56 ET (06:56 GMT)

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