found this but dyor, 11:02am: UGL’s stock has nosedived as it...

found this but dyor,


11:02am: UGL’s stock has nosedived as it warned of almost $200 million of cost blow-outs on a power station it is building on the Ichthys liquified natural gas project in Northern Territory in a joint venture with US engineering group CH2M Hill.
The joint venture, which is led by CH2M Hill, will take $US170 million of provisions due to design changes and delays to the project. CH2M Hill will book a $US85 million provision in their September quarter accounts.
UGL did not confirm whether it would take provisions or how large the provisions would be, saying only that it would update the market on or before its half year results in February.
“UGL is still reviewing the cost to complete estimate and given ongoing discussions with the client regarding the claims position and project acceleration does not feel in a position to reliably measure the provision at this stage,” the company said.
UGL won the $550 million contract in April 2012 as part of a 50-50 joint venture with CH2M Hill to design and construct a power station for the Ichthys project to supply electricity for an onshore facility based at Blaydin Point in Darwin.
Shares are down 11.3 per cent at $6.14.


Read more: http://www.smh.com.au/business/markets-live/markets-live-jobs-steady-shares-wobble-20141106-3jp5m.html#ixzz3IFQl37uV