RE:Legacy Projects Impact on FY24The gap between the projected cost to complete and the projected payments based on the contract is expensed at the end of the quarter so that the projects are completed at cost. They had it right as of December 31 so no further adjustements were made on March 31.
Claims cannot be added to receivables unless approved by the owner or the delegated engineer as the case may be.
Any settlements will reflect when agreed.
In my humble opinion, the most important green flag yesterday was the statement by the CEO that they will not negotiate a settlement with Coastal GasLink for claims totalling 1.2B considering the wait time is about 6 months. In my experience, when a contractor prefers to wait 6 months for the arbitration, it is because he has a very solid strong case.
Have a great WE everyone.
Gabs (- 3% of the shares)