15 Feb (NucNet): Toshiba Corporation has announced it expects to book a loss of 712.5bn yen (JPY) (€5.8bn, $6.2bn) from its US nuclear business in the third quarter of fiscal year 2016.
The Japanese company released its third-quarter provisional results in a statement on its website on 14 February 2017.
According to the statement, the expected write-down was caused by a recalculation of the book value of CB&I Stone & Webster, a US construction-service firm specialised in nuclear power projects, purchased by Toshiba’s US nuclear subsidiary, Westinghouse Electric Company.
Westinghouse said in January 2016 that it had completed the acquisition of CB&I Stone & Webster from Chicago Bridge & Iron, a Netherlands-based engineering and construction company.
In July 2016, Chicago Bridge & Iron began proceedings against Westinghouse as part of a dispute over the value of the acquired unit’s assets.
The deal included the possibility of adjustments to the purchase price depending on the evaluation of the assets.
Toshiba said it now plans to focus on its nuclear fuel and equipment supply businesses and will not provide engineering, procurement and construction contractor services for overseas projects, including ones in the UK, China and India.
Toshiba also said it intends to “reduce risk” at eight overseas plants currently in progress by implementing “comprehensive cost reduction measures”.
The Japanese company said it “will consider” participating in the Moorside new-build project in Cumbria, northwest England, but “without taking on any risk from carrying out actual construction work”.
The project owner NuGen, a joint venture between Toshiba and France’s Engie, yesterday said it “acknowledges” Toshiba’s announcement that the review of its overseas nuclear business is complete and that it “remains committed” to the “development” of the proposed three-unit Moorside power station.
Ahead of the financial figures announcement, Toshiba’s chief executive officer and chairman Shigenori Shiga resigned from his post, assuming "management responsibility" for the company's loss related to Westinghouse's acquisition of CB&I Stone and Webster.
Mr Shiga will remain an acting executive officer until a general shareholder meeting in June 2017, Toshiba said.
