I wonder if Cameron and Freeport will be able to “hold their forecast” from last quarter. Been there, done that - at the direction of executive management. Look for “soft spots that aren’t real yet”. Though pretty much more cost overruns guaranteed to materialize and usually much worse. Kick that can down the road - until next quarter and/or the next group of mid level managers get creative in numbers fabrication.
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YDfwmKC-6dih I have troubles understanding that the Tank guys screwed other divisions when it was a board direction to maintain those margins. Your correct, was kept in house. I don’t think CB&I did a good job of making all the divisions work well together. It’s all in the history books now.
Are they going to announce tanks or pipe fab sale with earnings? Heard a rumor that they are negotiating the tank sale with someone that guarantees they will have exclusive rights to all projects (other than JVs). Super deal if true! The tank guys screwed the other divisions with ridiculous markups and contingencies,, but at least the profit was kept in house - just put into another pocket. If true, can you say desperation? Unless DD and company have no intention of honoring the deal and are finding new ways to lie, cheat and steal for cash!
Could go either way, but so far DD is 3 for 3 in terms of announcing cost overruns. Hard to mess with perfection but one would hope the last hit was big enough to refill the kitty for at least a few quarters.
Also, the Board doesn't want to go into the shareholder meeting having delivered nothing but bad news...could set up an ugly vote.
Is Chiyoda going to get a lifeline? Can they get more cash when they don't even know how much it's going to cost to close out these projects?