Shares of Barrow-in-Furness international marine engineering company James Fisher and Sons plc rose about 30% on Wednesday after it announced it has received all outstanding funds relating to a suspended liquefied natural gas (LNG) project in Mozambique.
Fisher said the funds received “reduce net debt and provide further headroom against the group’s year-end banking covenant tests.”
The firm said it has settled all outstanding claims in relation to the suspended LNG project in Mozambique and accordingly has withdrawn its arbitration proceedings.
Fisher said the agreement settles claims in relation to work performed before the suspension of the project and “covers the group’s outgoings in relation to costs incurred during the suspension of the project in 2021.”
It said the terms of the settlement also cover the group’s costs through 2022 in the event that the project does not resume in the short term.
“The board reiterates its guidance that underlying operating profit for the full year, before separately disclosed items, is expected to be in the range of £27m – £32m, and expects the group to remain in compliance with its banking covenants,” said Fisher.