(Alliance News) - James Fisher & Sons PLC on Wednesday said it has now received all outstanding funds related to a suspended liquefied natural gas project in Mozambique.
Shares in the marine services provider were 16% higher at 352.37 pence on Wednesday in London.
The funds received will go towards reducing net debt and providing further headroom against the company's year-end banking covenant tests. James Fisher said it expects to remain in compliance with its banking covenants.
James Fisher has settled all outstanding claims related to the suspended project and withdrawn its arbitration proceedings.
The settlement will cover the group's costs for the project through 2022 should it not resume in the short term.
James Fisher reiterated its guidance for underling operating profit to come between GBP27 million and GBP32 million for 2021, reflecting a 21% to 33% drop from the GBP40.5 million reported for 2020.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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James Fisher and Sons (FSJ)