UGL Limited (ASX:UGL)
has updated the market regarding ongoing commercial negotiations related to claims arising from client delays and disruptions on the Ichthys
SMP and CCPP projects.
UGL is maintaining the issues are attributable to its client JKC Australia and a satisfactory commercial outcome with the company is yet to be agreed upon.
The company has stated it will not recognize margin on the SMP project while the negotiations are ongoing.
If commercial negotiations cannot be satisfactorily concluded then UGL has indicated it is prepared to pursue a formal dispute process to achieve an outcome that reflects its entitlements.
UGL Limited reported a net profit of $19.95 million at 31 December 2015.