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

KBR, Inc. 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.