Amec Foster Wheeler PLC Enterprise PDH litigation (7062J)
September 13 2016 - 6:30AM
UK Regulatory
TIDMAMFW
RNS Number : 7062J
Amec Foster Wheeler PLC
13 September 2016
Enterprise PDH litigation
Further to the update in our half-year results, Enterprise
Products has filed a lawsuit in the Harris County Court, Texas
alleging Amec Foster Wheeler is responsible for cost overruns and
delays on Enterprise's propane dehydrogenation ("PDH") unit in Mont
Belvieu.
Amec Foster Wheeler signed a contract with Enterprise in July
2013, covering engineering, procurement and construction
activities. The principal terms are for payment of hourly rates and
costs on a reimbursable basis with an estimate for the date of
completion. For the avoidance of doubt, this was not a fixed-price
contract.
As disclosed in the 2015 report and accounts, we have taken a
provision of GBP33m on this project against disallowed costs and
warranties as part of the adjustment to fair values of Foster
Wheeler AG's assets and liabilities post acquisition.
The contract we signed with Enterprise allocated risk on timing
and cost to them and this legal process appears to be an attempt to
avoid the terms they signed up to in 2013. We consider these
proceedings to be misconceived and we intend to vigorously defend
these claims.
Enquiries to:
Media:
Achilleas Georgiou (UK) + 44 (0)20 7429 7500
Lauren Gallagher (US) +1 602 757 3211
Investors:
Rupert Green +44 (0)20 7429 7500
Notes to editors:
Amec Foster Wheeler (www.amecfw.com) designs, delivers and
maintains strategic and complex assets for its customers across the
global energy and related sectors.
Employing around 36,000 people in more than 55 countries and
with 2015 revenues of GBP5.5 billion, the company operates across
the oil and gas industry - from production through to refining,
processing and distribution of derivative products - and in the
mining, clean energy, power generation, pharma, environment and
infrastructure markets.
Amec Foster Wheeler offers full life-cycle services to offshore
and onshore oil and gas projects (conventional and unconventional,
upstream, midstream and downstream) for greenfield, brownfield and
asset support projects, plus leading refining technology.
Amec Foster Wheeler shares are publicly traded on the London
Stock Exchange and its American Depositary Shares are traded on the
New York Stock Exchange. Both trade under the ticker AMFW.
Forward-Looking Statements
This announcement contains statements which constitute
"forward-looking statements". Forward-looking statements include
any statements related to the timing, results and success of
contracts, and are generally identified by words such as "believe,"
"expect," "anticipate," "intend," "estimate," "will," "may,"
"continue," "should" and other similar expressions. Forward-looking
statements are subject to various risks and uncertainties, many of
which are difficult to predict and generally beyond the control of
Amec Foster Wheeler, that could cause actual results and
developments to differ materially from those expressed in, or
implied or projected by, the forward-looking statements. Amec
Foster Wheeler does not undertake to update any of the
forward-looking statements after this date to conform such
statements to actual results, to reflect the occurrence of
anticipated results or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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September 13, 2016 07:30 ET (11:30 GMT)
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