WesternLink hurts Prysmian stock again. The shares of Valerio Battista's company, which entered the auction of volatility due to excessive downwards (-5,38%), returned to trading, losing 4,69%.
At the basis of the decrease, new problems emerged on the WesternLink connection. Prysmian has in fact communicated the temporary interruption of commissioning and testing of the cable connection between Scotland and Wales, "because of the checks that have been started in relation to a problem that occurred in the terrestrial section of the connection".
Prysmian points out that the event does not appear to be related to the fault identified in June 2018 in a different section, the submarine section, of the connection. A problem that had among other things forced the group to review 2018 guidance on EBITDA down (down to 860-910 million from the previous 910-970) following the decision to set aside 50 million euros (in addition to the previous 30) to meet the additional costs arising from the Westernlink contract.
“Prysmian – reads the note – “is committed to solving the problem in the shortest time possible, with minimum environmental and logistical impact, and will provide further updates in the coming days as soon as further results of the ongoing investigations become available”.
