KBR announces final settlement agreement
Published by Lydia Woellwarth,
KBR has announced that JKC Australia LNG Pty Ltd (JKC), a joint venture in which KBR has a 30% ownership interest, has entered into a binding settlement agreement that resolves outstanding claims and disputes between JKC and its client, ICHTHYS LNG PTY, Ltd (collectively, ‘the Parties’).
“We are pleased to announce the resolution of disputes between JKC and its client. This settlement is a favourable milestone in our commitment to resolve legacy matters, and it reduces uncertainty, liquidity risk and commercial dispute costs,” said Stuart Bradie, KBR President and CEO.
As a result of the Settlement Agreement, the Parties agreed to withdraw all claims and terminate all ongoing arbitrations and court proceedings between the Parties. In connection with the Settlement Agreement, KBR recorded the majority of the impact in its 2Q21 results and expects to record a non-material charge for final warranty items in its quarterly earnings for the period ended 30 September 2021. Additional details will be provided in connection with its 3Q21 earnings report.
The Settlement Agreement does not impact pursuit of, or positions related to, JKC's claim against its subcontractor associated with the combined cycle power plant, which KBR expects to result in a favourable cash award upon resolution.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/18102021/kbr-announces-final-settlement-agreement/
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