the definition of 'margin' is what you need to look at.. the fact they said it was 'high margin' tells us that the revenue they are going to recognise is much higher than the expense incurred to date.
the revenue is what has been contracted to be paid upon project commencement.
the expense incurred would mostly be payroll costs to date for engineering hours.
contract has been inked
financing still needs to be finalised
the costs involved in getting a contract such as this signed (which it already has achieved) took place over several years and would be several millions of dollars, which they will recoup once financial close is achieved and construction begins.
you must keep in mind that other people tendered for this project as well, and they would have just written all those man-hours off as a loss. Fluence will be compensated for the invested costs to date, and paid a handsome margin (profit) on top of it. Not to mention the on-going maintenance contract which will where the real juicy profit lies.
All in good time.
the definition of 'margin' is what you need to look at.. the...
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