B&W Provides Interim Project Update
December 31 2018 - 6:30AM
Business Wire
Babcock & Wilcox Enterprises, Inc. (NYSE:BW) (B&W)
announced today that it is updating the status and expected
turnover and transition to ongoing maintenance of four European
Renewable energy projects it previously announced would be handed
over to customers by the end of 2018.
“Since joining B&W in late November, B&W Executive Vice
President of Finance Louis Salamone, B&W Chief Strategy Officer
Henry Bartoli, and I, along with B&W Chief Implementation
Officer Robert Caruso, Interim B&W Chief Financial Officer Joel
Mostrom and others, have conducted daily reviews and updates of
B&W’s various Renewable projects in Europe and have visited a
number of them,” said B&W Chief Executive Officer Kenneth
Young. “These four projects are now operational and are in various
stages of performance and reliability testing. Based on our
continued reviews and discussions with customers, we anticipate
turnover of these projects will take place at various times during
the first and second quarters of 2019.”
“These four plants have reached active operational status and
are generating steam heat and delivering electricity to the grid,”
Young said. “Our DynaGrate® combustion grate systems are performing
as expected and a few of the Renewable plants have achieved
operational output of 100 to 105 percent.”
“We are currently making adjustments and modifications to
maximize performance for our customers, and a few of the sites are
now, or will be, shifting into reliability and performance testing
over the next several weeks,” he continued. “We are working closely
with our customers and financial institutions to move effectively
through various handover and testing processes, procedures,
documentation, punch lists, and test/certifications and anticipate
final turnover and transition into maintenance phases within the
first and second quarters of 2019. Two of these plants also will
shift into 15-year operational and maintenance contracts with
Babcock & Wilcox Vølund.”
“Additionally, Lou, Henry, Bob, Joel and I are evaluating
further cost reductions for B&W’s business, in addition to the
previously announced significant cost improvements,” Young said.
“We do see a pathway to reach run-rate EBITDA levels around $100
million within the company’s respective core businesses in the
future, following the completion of all current loss projects. We
will implement a deeper level of profit-and-loss accountability
within our lines of business and believe we can optimize the
various business units even further. In addition, we will begin the
process to refinance our senior debt positions in the first
quarter.”
“Finally, I want to personally thank all our stakeholders for
their continued support, hard work and efforts, and specifically
recognize the outstanding effort by all the B&W employees who
are working around the clock, through the holidays and weekends to
ensure we support our customers and meet our commitments as a
company.”
About B&W
Babcock & Wilcox is a global leader in energy and
environmental technologies and services for the power and
industrial markets, and has been transforming our world for 151
years. Follow us on Twitter @BabcockWilcox and learn more at
www.babcock.com.
Forward-Looking Statements
B&W cautions that this release contains forward-looking
statements, including, without limitation, statements relating to
our strategic objectives, future profitability, and pending and
future project execution. These forward-looking statements are
based on management’s current expectations and involve a number of
risks and uncertainties, including, among other things, our ability
to continue as a going concern; our ability to obtain and maintain
sufficient financing to provide liquidity to meet our business
objectives, surety bonds, letters of credit and similar financing;
our ability to satisfy the liquidity and other requirements under
our U.S. revolving credit facility as recently amended, including
our ability to receive concessions from customers on our Renewable
energy loss contracts; our ability to maintain compliance with the
NYSE’s continued listing criteria; the highly competitive nature of
our businesses; general economic and business conditions, including
changes in interest rates and currency exchange rates; general
developments in the industries in which we are involved;
cancellations of and adjustments to backlog and the resulting
impact from using backlog as an indicator of future earnings; our
ability to perform contracts on time and on budget, in accordance
with the schedules and terms established by the applicable
contracts with customers; failure by third-party subcontractors,
joint venture partners or suppliers to perform their obligations on
time and as specified; our ability to realize anticipated savings
and operational benefits from our restructuring plans, and other
cost-savings initiatives; our ability to successfully address
productivity and schedule issues in our Renewable segment,
including the ability to complete our Renewable energy projects
within the expected time frame and the estimated costs; our ability
to successfully partner with third parties to win and execute
renewable contracts; changes in our effective tax rate and tax
positions; our ability to maintain operational support for our
information systems against service outages and data corruption, as
well as protection against cyber-based network security breaches
and theft of data; our ability to protect our intellectual property
and renew licenses to use intellectual property of third parties;
our use of the percentage-of-completion method of accounting; our
ability to successfully manage research and development projects
and costs, including our efforts to successfully develop and
commercialize new technologies and products; the operating risks
normally incident to our lines of business, including professional
liability, product liability, warranty and other claims against us;
changes in, or our failure or inability to comply with, laws and
government regulations; actual or anticipated changes in
governmental regulation, including trade and tariff policies;
difficulties we may encounter in obtaining regulatory or other
necessary permits or approvals; changes in, and liabilities
relating to, existing or future environmental regulatory matters;
changes in actuarial assumptions and market fluctuations that
affect our net pension liabilities and income; potential violations
of the Foreign Corrupt Practices Act; our ability to successfully
compete with current and future competitors; the loss of key
personnel and the continued availability of qualified personnel;
our ability to negotiate and maintain good relationships with labor
unions; changes in pension and medical expenses associated with our
retirement benefit programs; social, political, competitive and
economic situations in foreign countries where we do business or
seek new business; the possibilities of war, other armed conflicts
or terrorist attacks; the willingness of customers and suppliers to
continue to do business with us on reasonable terms and conditions;
and our ability to successfully consummate strategic alternatives
for non-core assets, if we determine to pursue them. If one or more
of these risks or other risks materialize, actual results may vary
materially from those expressed. For a more complete discussion of
these and other risk factors, see B&W’s filings with the
Securities and Exchange Commission, including our most recent
annual report on Form 10-K and subsequent quarterly reports on Form
10-Q. B&W cautions not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release, and undertakes no obligation to update or revise any
forward-looking statement, except to the extent required by
applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20181231005026/en/
Investor Contact:Megan WilsonVice President, Corporate
Development & Investor RelationsBabcock &
Wilcox704.625.4944 | investors@babcock.comMedia Contact:Ryan
CornellPublic RelationsBabcock & Wilcox330.860.1345 |
rscornell@babcock.com
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