As part of the settlement, ABB will pay about $104 million or 1.56 billion ZAR to Eskom, and all parties will mutually release each other from any and all claims associated with the Controls and Instrumentation Contract, and its Variation Orders relating to Units 1 and 2 at Kusile.
The majority of the payment has already been recognized in ABB’s financials over the last fifteen months. In the fourth quarter of 2020, there will be an additional impact of about $30 million on operational EBITA and a negative cash flow impact of about $110 million related to the settlement.
Furthermore, ABB will continue to cooperate fully with the National Prosecuting Authority in South Africa, as well as authorities in the US, Germany and Switzerland in their review of the Kusile project. ABB intends to expeditiously close all related pending proceedings globally, the impact of which is currently not estimable.
ABB will continue to serve South Africa as an integrity-minded corporate citizen, contributing to a reliable electrical supply, and is committed to finalizing the Kusile project in line with its contractual obligations.
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 110,000 talented employees in over 100 countries. www.abb.com