James Fisher receives funds for suspended LNG project, shares surge

Marine service provider James Fisher and Sons reiterated its full-year profit guidance on Wednesday as it said it has received all outstanding funds relating to its suspended liquefied natural gas project in Mozambique.

The funds will reduce net debt and provide further headroom against the company’s year-end banking covenant tests.

James Fisher has settled all outstanding claims in relation to the suspended LNG project and has withdrawn its arbitration proceedings. The agreement settles claims in relation to work performed before the suspension and covers outgoings in relation to costs incurred during the suspension of the project this year.

The terms of the settlement also cover costs through 2022 in the event the project does not resume in the short term.

Fisher reiterated guidance for full-year underlying operating profit before separately disclosed items of between £27m and £32m, and said its expects to remain in compliance with its banking covenants.

At 1135 GMT, the shares were up 17% at 356.27p.