Shares in NRW Holdings have nearly doubled in value after the company lifted a trading suspension following two wins in the Supreme Court of Western Australia in its dispute with Samsung C&T.
The Supreme Court has today ordered Samsung to make an $8.5 million payment to NRW for work on the Roy Hill iron ore project in the Pilbara.
The ruling follows news earlier this week that the Supreme Court had upheld a further $17 million adjudication in favour of NRW.
At the close of trade today, the Perth-based contractor’s shares were 97.8 per cent higher, or 9 cents, to 18.2 cents per share.
“Whilst I am pleased that the Supreme Court has ruled in our favour in these two matters, I am disappointed that we have had to revert to legal processes to progress a commercial resolution, particularly given the prolonged period of negotiations with Samsung,” NRW chief executive Jules Pemberton said.
“Our objective on the Roy Hill project remains to achieve a fair commercial outcome through ongoing discussions with Samsung senior management, and if necessary further Supreme Court action and the contractual dispute resolution process.”
In a statement, NRW said it had received no indication from Samsung that the company would comply with the Supreme Court’s judgements and outstanding adjudications.
“The adjudication process under the Construction Contracts Act 2004 has to-date resulted in awards of about $35 million in favour of NRW, an increase of $9 million from that previously advised,” the company said.
The full amount of the contract dispute between the two parties remains undisclosed.
Although it has been confirmed in two adjudications that practical completion on NRW’s contractual obligations had been achieved in April, Samsung has still refused to issue NRW a certificate of practical completion.
“Consequently, NRW will continue to dispute Samsung’s claim for liquidated damages,” it said.