Further to the announcement posted on 24/06/2014, relating to one of its subsidiaries in Germany, PWT Wasser-und Abwassertechnik GmbH (PWT), (owned 80% by SAAC and engaged in EPC contracts for water and sewage treatment plants), and who was facing certain legal actions with one of its projects i.e. Al Samawa (south of Iraq) Unified Water Treatment Plant (the “Project”), Saudi Arabian Amiantit is hereby communicating further developments as such:
On Friday 19th of September 2014, PWT cashed a trade receivable amount of approximately USD 8 million, from the owner of the project, as a result of the owner’s decision to reinstate the contract with PWT, subsequent to the claims of a sub-contractor of the project, against him and PWT, having been dismissed by the Iraqi Court of appeal.
The cashing in of this receivable enables PWT to resume the execution of the Al-Samawa project. However, considering the current political uncertainties in the region, PWT decided, in order to be conservative, to continue deferring the profit recognition on this project until such the time when the percentage of completion and revenue flow have reach a stage where the profit can be considered as reasonably certain.