Ann: Preliminary Financial Report Incorporating Appendix 4E, page-4

I am glad I sold out. I am amazed the share price is not lower.

Does this mean there were major modifications to a project, but AE1 did not agree on pricing and continues working on project.

Is A4 below additional to what has already been accounted for in A3? A3 appears to be multiple contracts that were settled (at a loss), while A4 has not been agreed. No information on how large the A4 contract is.

Nice of them to keep shareholders informed only about contract wins, but not about contract problems.

A3 says:

Subsequent to 31 December 2022, the Group reached agreements with customers for
variations and claims associated with scope changes, extension of time and delay and
disruption. In order to expedite an improvement in working capital, the Group accepted
lower settlement amounts than what would otherwise have been accepted. The impact is
reflected as reversals to revenue in profit or loss for the year ended 31 December 2022.
In addition, significant, non-recurring items includes external legal fees and independent
time and cost expert costs of $4.062 million. These costs are included in other expenses in
profit or loss for the year ended 31 December 2022.

A4
In a prior period, the Group entered into a tender period for early contractor involvement
(ECI) for the preliminary design a plant. On completion of the ECI, the Group was awarded
an EPC contract for the design and construction of the plant.
In consultation with the customer, hazard and operability studies, operational and
engineering improvements were identified post ECI. Engineering changes from the initial
ECI process to the actual plant design were approved by the customer.

These changes significantly increased the complexity and sequencing of construction
activities. Materials and labour required to execute works under construction also
increased. The Group is in the process of agreeing contract modifications with the
customer arising from these variations. The corresponding change in price has not yet
been finalised but is expected prior to practical completion.
The finalisation of the contract modifications may materially impact the financial
performance of the Group.