KBR Settles Dispute With Ichthys Power Plant Subcontractor, Expects Cash Payments Of $271M

• KBR, Inc. (NYSE:KBR) joint venture JKC Australia LNG Pty Ltd (JKC), in which KBR has a 30% ownership interest, and Kellogg Brown & Root Pty Ltd have entered into a conditional settlement agreement to resolve outstanding claims and disputes between JKC and its power plant subcontractor.
• "We are pleased to announce the resolution of this dispute between JKC and the Consortium. This resolution removes significant uncertainty, distraction, and legal costs," said Stuart Bradie, KBR President and CEO.
• KBR anticipates receiving about $271 million in cash as a result of the Settlement Agreement, divided into two installments of $203 million in April 2022 and $68 million in March 2023.
• KBR anticipates a non-cash loss of roughly $140 million in its first-quarter 2022 earnings, which ended March 31, 2022.
• The parties also agreed to withdraw all claims and terminate the ongoing arbitration.
• Price Action: KBR shares are trading higher by 1.37% at $54.06 on the last check Tuesday.