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BATON ROUGE, US: The Shaw Group Inc received an arbitration award of approximately $32.5 million for a contract previously executed by its power segment for the engineering, procurement and construction of a 600-megawatt steam turbine electrical generation plant in the US.
Shaw will recognize an immaterial gain in the company’s earnings in the fourth quarter of fiscal year 2011 and expects to collect cash in the amount of the award.
This arbitration settles force majeure, schedule-related liquidated damages and other claims. Final acceptance performance testing for closing out the contract must be completed. The receipts result from the return of liquidated damages previously collected or withheld by the customer, payment for force majeure costs and other damages and increased costs, as well as the return of a letter of credit drawn by the customer.
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