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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Source: Babcock & Wilcox Enterprises, Inc.