CHARLOTTE, N.C.--(BUSINESS WIRE)--
Babcock & Wilcox Enterprises, Inc. (B&W) (NYSE:BW) reported that it has identified a structural steel issue at a renewable energy project in the United Kingdom. Management believes that the issue is the result of an engineering error by a subcontractor, and work has been stopped at the project pending further investigation. Additionally, while the issue has not manifested itself in other projects, the company has proactively stopped work at two renewable projects in the United Kingdom that have similar engineering designs.
“We are working diligently to assess the situation. Keeping in mind that the safety of our employees and subcontractors is our top priority, we chose to stop work temporarily at all three projects,” said Jimmy Morgan, senior vice president of B&W’s Renewable segment. “We presently expect the total cost impact to the first project will be in the range of $10 to 15 million. We also presently expect the total cost impact to the other two projects to be below that amount. These estimates do not take into account possible recoveries from third parties, which we intend to actively pursue.”
About B&W
Headquartered in Charlotte, N.C., Babcock & Wilcox is a global leader in energy and environmental technologies and services for the power and industrial markets, and has been transforming our world for 150 years. B&W companies employ approximately 5,000 people worldwide. Follow us on Twitter @BabcockWilcox and learn more at www.babcock.com.
Forward-Looking Statements
B&W cautions that this release contains forward-looking statements, including, without limitation, statements relating to the cost and schedule to complete certain renewable energy projects underway in the United Kingdom and the potential effects of the matters identified in this release. These forward-looking statements and the consequences of these matters are based on management’s current expectations and involve a number of risks and uncertainties, including, among other things, our ability to successfully address productivity and schedule issues in our Renewable segment, including our efforts to enhance its resources and infrastructure; the actual cost impacts of the matters identified in this release on the renewable energy projects, including the amount of any recovery from third parties; timely completion of engineering work; productivity of subcontractors; disruptions experienced with customers and suppliers; our ability to maintain sufficient sources of liquidity to fund our operations, including sufficient bonding and surety capacity to meet customer requirements; the inability to retain key personnel; and adverse changes in the industries in which we operate. If one or more of these risks or other risks materialize, actual results may vary materially from those expressed. For a more complete discussion of these and other risk factors, see B&W’s filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. B&W cautions not to place undue reliance on these forward-looking statements, which speak only as of the date of this release, and undertakes no obligation to update or revise any forward-looking statement, except to the extent required by applicable law.
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