Metso has completed the termination of its waste-to-energy business and now settled the related legal processes concerning historic projects. As a result, it will book a one-time expense of €255 million in the July-September results of its discontinued operations.
Considering the existing provision, the cash flow impact of this expense in 2024 is around €270 million. The waste-to-energy business has been reported as part of discontinued operations in Outotec since December 2019 and in Metso since 2020, following the merger of Metso Minerals and Outotec.
A Metso statement read: “With the termination of the business and the settlement agreements of the pending legal processes, Metso has fulfilled the obligations and responsibilities of the delivery contracts related to the several orders received by Outotec in 2015. The challenges related to these deliveries began in 2019, before the merger of Metso Minerals and Outotec.
“The uncertainties related to the waste-to-energy business and its deliveries were considered as part of the overall merger exchange ratio determination in 2019. After the merger, Metso has noted in its financial statements and interim reports that there are risks associated with these old waste-to-energy projects. The company last reported in February 2023 that the last three projects were in legal processes, which have now been settled.”
