Stefanutti Stocks said yesterday it would finalise the submission of documentation to the Dispute Adjudication Board (DAB) with regard to its R1.1 billion Kusile power project subcontractor cost claims next year.
The struggling construction firm yesterday provided shareholders with an update on the Kusile power project as reported in its interim results released last month.
As stated in the results, the group said it had submitted an overarching preliminary and general cost claim and subcontractor overarching preliminary and general cost claim of R337 million and R194m, respectively, amounting to R1.14bn.
“In terms of the process as outlined in the results, the experts will review all claims, draft agreements and narrow issues of difference for referral to the DAB for a decision.
“It is intended that the group will submit the remaining claims relating to commissioning costs and interest to the experts in the new year,” it said.
The group said it envisaged that the DAB would issue its binding decision during the second quarter of 2023, at which point either party could issue a notice of dissatisfaction and refer the dispute to arbitration.
“At this stage, the group’s claims team is unable to quantify the value of the potential awards as the claims must follow due process. Therefore, these provisional claims have not been recognised in the financial statements,” it said.
In the firm’s interim results it had reported that its operating profit soared 505% and its loss more than halved in the six months to August 30.
The restructuring plan was being implemented over the years ending February, 2023 and February, 2024.
The loss for the interim period came to R33.5m compared with a R97.91m loss at the same time last year. The operating profit increased to R54.3m from R8.93m.
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