While we are stripping the money making projects of GP, the company is starting to recognize the losses at ANOTHER CB&I LEGACY PROJECT:
ASHEVILLE
It is another troubled project. Post Shaw merger, the only thing CB&I built was Colombian lawsuits (REFICAR) and company k--ling projects (Cameron, Total, Freeport, IP&L, Calpine and Asheville)
Why did we buy CB&I? Why didnt we sell the power division?
Thank you Cameron! Thank you Asheville! Hello Bankruptcy!
The project estimates were pulled together using past CCGT projects.. one of the many problems with using past projects was that SHAW, CBI, Mcdermott had never built a two 1 on 1 project before and two 1 on 1 units does not equal one 2 on 1 project.. when you have scope growth of 90 to 100% you have a problem.
Wouldn't be surprised if we get out of power. Everyone seems to be losing money on these things. Alone, it's probably not big enough to bankrupt us unless it's a complete disaster. Stack a few more of these and the banks will be calling in their loans.
Umm...you're welcome?