Funny how there is always one or two somewhat positive news pieces and the bad news is always at the end.
And it is bad news in my opinion. Decmil is owed money so agreeing to delay is not exactly indicative of the strength of the case. Previously they said that if there was a loss on Sunraysia they could turn around to get the money back from Schneider, which makes sense. If they are now pursuing Schneider only it sounds like they are loosing the Sunraysia arbitration.
If you assume for a second that that is indeed true that Decmil had effectively lost the Sunraysia arbitration, then the whole dynamic (and this announcement) makes sense. Decmil would obviously be super keen to wait until the outcome of the Schneider arbitration because loosing Sunraysia without knowing the outcome on Schneider raises the question again whether they are sufficiently capitalized. I can see how Maoeng would be OK to wait because wining has no cash flow impact for them and they are private so resolution of this dispute matters probably less and getting their contractor in existential trouble without the project being finished is probably not a good idea either.
In the reverse scenario where Decmil had won the Sunraysia arbitration they would have pushed for being paid immediately no? Why wait a few months; who knows what happens to Maoeng in the meantime. Also given what they said on Schneider being dependent on Sunraysia, if Decmil won the Sunraysia arbitration, what is there to pursue against Schneider? Presumably you don't have a loss to recover.
DCG Price at posting:
37.0¢ Sentiment: Sell Disclosure: Not Held