KBR Announces Settlement Agreement with Ichthys Power Plant Subcontractor
KBR announced a conditional settlement with JKC Australia LNG Pty Ltd, which it holds a 30% interest in, to resolve disputes with a consortium that includes General Electric. The agreement is expected to provide KBR with significant cash proceeds of USD$271 million, divided into two payments: USD$203 million in April 2022 and USD$68 million in March 2023. However, KBR anticipates a non-cash loss of approximately USD$140 million in Q1 2022. The settlement is conditional, and ongoing arbitration will continue until all conditions are met.
- Expected cash proceeds of USD$271 million from the settlement.
- Resolution of disputes reduces uncertainty and legal costs.
- Anticipated non-cash loss of USD$140 million in Q1 2022 results.
- The settlement remains conditional and dependent on the consortium's actions.
- Significant cash proceeds of USD
$271M
HOUSTON, April 12, 2022 /PRNewswire/ -- KBR (NYSE: KBR) announced that JKC Australia LNG Pty Ltd ("JKC") joint venture, in which KBR has a
"We are pleased to announce the resolution of this dispute between JKC and the Consortium. This resolution removes significant uncertainty, distraction and legal costs," said Stuart Bradie, KBR President and CEO.
As a result of the Settlement Agreement, KBR expects to receive approximately
The Settlement Agreement remains conditional and the outstanding arbitration between JKC and the Consortium is proceeding until the conditions are satisfied. If any member of the Consortium fails to take the actions necessary to satisfy the conditions to the Settlement Agreement, the Settlement Agreement will become void.
Should the conditions of the Settlement Agreement be satisfied, the parties agree to withdraw all claims and terminate the ongoing arbitration between the parties.
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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.
The company'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 the company has identified that may affect its business, results of operations and financial condition. Except as required by law, the company undertakes no obligation to revise or update publicly any forward-looking statements for any reason.
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SOURCE KBR, Inc.
FAQ
What is the cash proceeds KBR expects from the settlement agreement with JKC?
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What is the expected non-cash loss for KBR in Q1 2022?
Is the settlement agreement between KBR and the consortium final?
What does the settlement agreement resolve for KBR?
