The Competition Authority in the Czech Republic recently informed Skanska that it will issue a decision to terminate the proceeding initiated in 2016 concerning the R4 project in the Czech Republic.
The statement follows the judgment from the Czech Supreme Court in March 2019 to annul the previous decision by the Competition Authority to impose a fine on Skanska and other companies. Given the low likelihood of any further financial exposure in the case, Skanska will release a central provision, impacting operating income in the Central stream positively in the second quarter 2019 totaling SEK 212 M. This will not have a cash flow impact.
Also, as communicated earlier, Skanska Norway was awarded damages by the Court of Appeal in the case Follo EPC Oslo S after the Norwegian Supreme Court’s decision not to grant the client (National Rail Administration) a permission of appeal in April 2019. This will have a positive impact of SEK 196 M on Skanska’s operating income and cash flow in the Construction stream in the second quarter 2019.