April 10, 2019 / 5:26 PM / 12 days ago

UPDATE 1-Prysmian to review 2018 results after latest WesternLink setback

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MILAN, April 10 (Reuters) - Italian cable maker Prysmian will review its financial results for last year in light of the latest setback facing its WesternLink submarine connection and damage claims following an anti-competition probe.

The world’s biggest cable maker has struggled for years to overcome technical difficulties with the WesternLink high-voltage cable which have weighed on its shares and undercut results.

Earlier this week it announced another setback when it said the protection system on the power cable had tripped during the commissioning phase.

Prysmian said on Wednesday this latest episode could impact its 2018 earnings at the adjusted EBITDA level to the tune of 60-80 million euros ($68-90 million).

It said its board would meet again on April 17 “to discuss and examine any and all elements that could arise from the preliminary investigation on WesternLink interconnection, and to define the necessary adjustments to the financial statements.”

The company has already booked 95 million euros of provisions on its 2018 results, approved on March 5, due to previous hitches on the high-voltage cable connecting Scotland to England.

Prysmian, which last year bought U.S. General Cable, gave no details on compensation claims it said had recently been submitted by some customers following a European Commission ruling in 2014 on alleged fair competition breaches.

The group has already set aside 233 million euros in provisions to cover such potential risks.

It said it had decided to cancel its shareholders meeting scheduled for April 17 and reschedule in the light of the recent events.

The dividend that may be proposed on last year’s results after the review could be paid in June, it said.

$1 = 0.8870 euros Reporting by Agnieszka Flak and Stephen Jewkes; editing by David Evans

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