M&R adds $63m to Gorgon losses
South African engineering player Murray & Roberts has almost doubled the financial hit it is anticipating to absorb from its work on the Gorgon LNG project, revealing almost $63 million in additional costs to complete a marine project which is three months behind schedule.
Murray & Roberts revealed the additional 520 million rand cost in an updated trading statement on Friday evening Western Australia time, adding to a previous 580 million rand that it recognised as a loss on the project for the past financial year.
“Piling works are progressing slower thanplanned as a consequence of adverse weather, productivity andgeological issues,” the company told the Johannesburg Stock Exchange.
“The project is envisaged to be completedtowards the end of the third quarter of the financial year,about three months later than previously expected.
“The currentforecast loss at completion has increased by an estimated R520million, which is over and above the loss accounted for at theend of the previous financial year.
“A geotechnical analysis isunderway to establish the extent of the geological issues. Theoutcome of this analysis is important to determine whether theadditional costs are recoverable.”
source : www.wabusinessnews.com.au
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Submited at Monday, October 24th, 2011 at 10:00 pm on Business by chuck
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