UGL shares have lost a third of their value after the engineering firm said it may face a $200 million provision due to delays on the massive Ichthys LNG project near Darwin.

UGL said that client-related delays were disrupting its construction work on the onshore facilities for the Ichthys project. Consequently, UGL said, it may need to make a $200 million provision if negotiations with JKC Australia LNG – the major contractor for Ichthys’s onshore LNG plant – are unsuccessful and the…