UGL Warns of $180m Cost Blowout

Engineering and property services firm UGL has warned of a $180 million cost blowout to a joint venture power station at the Ichthys LNG project in northern Australia.

The joint Venture of UGL, CH2M HILL and GE now expects the project to cost another $US170 million ($A183.93 million) due to increased costs and delays as the project moves into the construction phase next year.

“UGL have been advised by CH2M Hill that as claims for the recovery of these increased costs are not yet sufficiently resolved to recognise as revenue to offset the increases, they will book a $US85 million ($A91.97 million) provision in their September quarter accounts pending resolution of these issues,” UGL said in a market update.


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