Built to inform

Sign up for the daily newsletters

No, Thank you

Turbine breakdown in Oman to cost Sembcorp $2.9m

Sembcorp Salalah Power and Water expects the breakdown of its Gas Turbine #5 to result in a negative revenue impact of approximately $2.86m

Sembcorp Salalah Power and Water’s Gas Turbine #5 suffered a major breakdown in August [representational image].
Sembcorp Salalah Power and Water’s Gas Turbine #5 suffered a major breakdown in August [representational image].

Sembcorp Salalah Power and Water has revealed that its Gas Turbine #5 (GT5) suffered a major breakdown in August.

The turbine was subsequently opened for inspection and, on 4 September, the firm’s senior management met with the turbine’s manufacturer.

As a result of the incident, Sembcorp expects to incur a negative revenue impact of approximately $2.86m (OMR1.1m), according to a statement issued to Muscat Securities Market (MSM).

READ: Sembcorp Salalah to refinance senior debt

It emphasised that this is a preliminary estimation, as the total repair costs and durations cannot yet be precisely assessed.

Sembcorp added that it has made the required notifications to insurance companies, and that the damage claim process has been initiated.

The unexpected technical failure may affect the dividend for the year ending 31 December, 2017, according to the firm.

Most popular

Awards

Construction industry conversations around digitisation must evolve
The Middle East construction industry’s approach to tech must evolve and focus on how can

Conferences

Leaders Kuwait 2019: Tips on how to resolve construction conflicts
Pinsent Masons, KEO and HFW discussed overcoming disputes during CW’s Leaders in Construction Summit Kuwait
Construction Week's Leaders Kuwait 2019 summit kicks off today
More than 100 decision-makers from Kuwait's construction industry to convene at conference in Kuwait City

Latest Issue

Construction Week - Issue 751
Oct 13, 2019