KBR Announces Final Settlement Agreement Between JKC and Ichthys LNG Client
KBR (NYSE: KBR) has announced a binding settlement between its joint venture, JKC Australia LNG Pty Ltd, and its client, ICHTHYS LNG PTY, resolving outstanding claims and disputes. This resolution terminates all ongoing arbitrations and court proceedings, reducing liquidity risk and commercial dispute costs. KBR expects to reflect the majority of the settlement's impact in its Q2 2021 results, with a non-material charge anticipated for final warranty items in Q3 2021. The agreement does not affect JKC's claims against its subcontractor for the combined cycle power plant.
- Settlement reduces uncertainty and liquidity risk for KBR.
- Resolution of ongoing disputes eliminates arbitration and court costs.
- Expected favorable cash award from claims against subcontractor.
- None.
HOUSTON, Oct. 15, 2021 /PRNewswire/ -- KBR (NYSE: KBR) announced that JKC Australia LNG Pty Ltd ("JKC"), a joint venture in which KBR has a
"We are pleased to announce the resolution of disputes between JKC and its client. This settlement is a favorable 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 2nd quarter 2021 results and expects to record a non-material charge for final warranty items in its quarterly earnings for the period ended September 30, 2021. Additional details will be provided in connection with our 3rd quarter 2021 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 favorable cash award upon resolution.
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We deliver science, technology and engineering solutions to governments and companies around the world. KBR employs approximately 29,000 people worldwide with customers in more than 80 countries and operations in 40 countries.
KBR is proud to work with its customers across the globe to provide technology, value-added services, and long- term operations and maintenance services to ensure consistent delivery with predictable results. At KBR, We Deliver.
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Forward Looking Statement
The statements in this press release that are not historical statements, including statements regarding future financial performance, are forward-looking statements within the meaning of the federal securities laws. These statements are subject to numerous risks and uncertainties, many of which are beyond the company's control that could cause actual results to differ materially from the results expressed or implied by the statements. These risks and uncertainties include, but are not limited to: the significant adverse impacts on economic and market conditions of the COVID-19 pandemic and the company's ability to respond to the resulting challenges and business disruption; the recent dislocation of the global energy market;; the company's ability to manage its liquidity; the outcome of and the publicity surrounding audits and investigations by domestic and foreign government agencies and legislative bodies; potential adverse proceedings by such agencies and potential adverse results and consequences from such proceedings; changes in capital spending by the company's customers; the company's ability to obtain contracts from existing and new customers and perform under those contracts; structural changes in the industries in which the company operates; escalating costs associated with and the performance of fixed-fee projects and the company's ability to control its cost under its contracts; claims negotiations and contract disputes with the company's customers; changes in the demand for or price of oil and/or natural gas; protection of intellectual property rights; compliance with environmental laws; changes in government regulations and regulatory requirements; compliance with laws related to income taxes; unsettled political conditions, war and the effects of terrorism; foreign operations and foreign exchange rates and controls; the development and installation of financial systems; the possibility of cyber and malware attacks; increased competition for employees; the ability to successfully complete and integrate acquisitions; and operations of joint ventures, including joint ventures that are not controlled by the company.
KBR's most recently filed Annual Report on Form 10-K, any subsequent Form 10-Qs and 8-Ks, and other U.S. Securities and Exchange Commission filings discuss some of the important risk factors that KBR has identified that may affect the business, results of operations and financial condition. Except as required by law, KBR undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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SOURCE KBR, Inc.
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