Post by
Gabriel on Jan 05, 2024 3:04pm
Financial implications
The mark to market accounting is such that 20% of the difference between the cost to complete PLUS penalties for being late on the Gordie Howe bridge and the projected payments per the contract was previously shown as a loss.
That difference has just been reduced by about 700m + 200m for penalties for a total of 900m. 20% of that is our share. So our financial statement should reflect approximately 180m received or to be received. These are not attached to milestones (like for Eglinton and Finch) so they should show immediately. 180m is 3$ per share.
The waived penalties are shown in the contract and equate to the cost of the infrastructure per month mainly cost of capital (5.7 B * 4.2% *10 mo/12 mo) = 200m waived penalty.