Jacobs Engineering Group Inc. (NYSE:JEC) Files An 8-K Other Events
Item 8.01 Other Events.
As previously reported by Jacobs Engineering Group Inc. (the “Company”), on September 30, 2015, Nui Phao Mining Company Limited (“NPMC”) commenced arbitration proceedings against Jacobs E&C Australia Pty Limited (“Jacobs E&C”) in Singapore before the Singapore International Arbitration Centre. Jacobs E&C was engaged by NPMC for the provision of management, design, engineering, and procurement services for a Nui Phao mine/mineral processing project in Vietnam as part of the Company’s Energy, Chemicals & Resources (“ECR”) line of business. A three-week hearing on the merits concluded on December 15, 2017. On March 28, 2019, the arbitration panel issued a decision finding against Jacobs E&C and awarding damages to NPMC of approximately $95 million. In addition, NPMC is entitled and expected to seek recovery of costs, interest and attorneys’ fees. The award otherwise remains confidential. The Company is evaluating its options with respect to the arbitration decision. We expect that a significant portion of the award is subject to recovery from insurance. Under the terms of the previously announced pending sale of the Company’s ECR business to WorleyParsons Limited, the Company has retained liability with respect to this matter.
About Jacobs Engineering Group Inc. (NYSE:JEC)
Jacobs Engineering Group Inc. is a technical professional services company. The Company provides a range of technical, professional and construction services to industrial, commercial and governmental clients. The Company’s services include Project Services; Process, Scientific, and Systems Consulting Services; Construction Services, and Operations and Maintenance Services. It operates four lines of business (LOBs): Petroleum and Chemicals; Buildings and Infrastructure; Aerospace and Technology, and Industrial. It caters its services to various sectors, such as oil and gas exploration, production and refining; chemicals and polymers; programs for various national governments, including aerospace, defense, and environmental programs; buildings; infrastructure and telecommunications; mining and minerals; pharmaceuticals and biotechnology; power; pulp and paper; technology and manufacturing, and food and consumer products.