Fluor acknowledges supreme court of Queensland decision

Although a final judgment is not expected until later this year, Fluor (FLR) acknowledges the August 8 decision in favor of Santos by the Supreme Court of Queensland regarding a legal dispute over the Gladstone LNG project in Queensland, Australia. The court generally accepted the recommendations of a panel of referees that the court appointed to oversee the case despite Fluor’s objection. The dispute has been ongoing since 2016 over Santos’ efforts to recover costs related to a reimbursable project completed by Fluor in 2015. Further arguments and input from both parties will be heard by the court before a final judgment is delivered sometime later this year. Fluor maintains the contracting principles addressed by the court have wide-sweeping consequences in the engineering and construction industry. The company is reviewing the court decision and exploring its response including the timing of its appeal. We are also working with our insurance carriers to address the obligations arising from the final judgment.