Engineering contractor Monadelphous Group has settled a $200 million dispute with Queensland customer Wiggins Island Coal Export Terminal but has not disclosed the terms.
Monadelphous said today the terms of the agreement were confidential and would not have a material impact on the overall earnings of the company.
The announcement follows a surge in the contractor’s share price over the past month to a closing high today of $10.10, its highest close in just over a year.
The dispute, disclosed in 2014, related to contracts awarded to MMM, a 50:50 joint venture between Monadelphous and Malaysia’s Muhibbah Engineering.
The joint venture was awarded two contracts on the expansion of the Wiggins Island Coal Export Terminal.
The works included an approach jetty, a ship berth, and a shiploader for the coal export terminal in Gladstone.
Wicet made a $130 million claim against MMM for disputed payments, plus damages and interest.
There were also claims that Monadelphous inappropriately obtained confidential information belonging to Wicet.
“The information in question was received in the ordinary course of business,” Monadelphous said in a statement last year.
“In order to avoid unnecessary legal proceedings MMM has agreed to return the information to Wicet.”
Monadelphous said last June it planned to lodge a $200 million counterclaim against Wicet “to recover costs associated with changes in scope and nature of the works required to be completed, and the value of the bank guarantees drawn down”.
The company said that, during the past 25 years, it had never instituted legal proceedings against a customer, nor had any customer previously filed a similar claim against the company.