A U.K. arbitration panel surprised Fluor Corp. and its investors last month with a ruling against the contractor's $480-million claim for additional compensation from owners of the Greater Gabbard wind farm off the coast of England. As a result, Fluor said on Nov. 17 it will take a $400-million charge in the fourth quarter but says the action will not materially affect cash flow.
"Fluor delivered a quality project, and we are extremely disappointed with this unexpected decision," said company Chairman and CEO David Seaton. He noted owner statements acknowledging that the $1.8-billion lump-sum project's 140 turbines are commissioned and exporting electricity and that performance "is more than 10% ahead of the client's expectations."