BATON ROUGE, La., Nov 18, 2003 (BUSINESS WIRE) -- The Shaw Group
Inc. (NYSE:SGR) today announced that it received approval from the
U.S. Bankruptcy Courts in the Southern District of New York on
November 6, 2003 and in Jackson, Mississippi on November 13, 2003 for
the settlement of claims related to the cancellation of the LSP-Pike
Energy, LLC ("Pike") power plant project in Mississippi. The Company
also announced that its subsidiary, Stone & Webster Construction,
Inc., has entered into a five-year, $175 million contract to perform
supplemental maintenance, modification, engineering, environmental,
and related services for 26 electric power generating facilities owned
and operated by NRG Energy, Inc.
As the Company disclosed in a prior announcement, among
consideration received in the settlement is a fixed claim of $35
million, ownership of the Pike project materials and equipment,
excluding the turbines, as well as ownership of the project site. In
October, Shaw sold its fixed claim for net proceeds of $14.7 million.
Under the terms of the supplemental maintenance agreement, Shaw
will provide fleet-wide maintenance assessments and services, as well
as unit overhauls at NRG sites located in the Northeast, Midwest,
Mid-Atlantic, South Central and Western United States. The Company
recently completed a maintenance overhaul at Big Cajun II, a
three-unit coal-fired facility in New Roads, Louisiana.
"The successful outcome of what has been a very difficult
situation for both parties can be attributed to our creative approach
and cooperative negotiation to bring this to an amicable resolution.
We protected the interests of our shareholders and also laid the
groundwork for what we hope will be a profitable long-term
relationship with NRG Energy," stated J.M. Bernhard, Jr., Chairman and
Chief Executive Officer of The Shaw Group Inc.
"We have made a concentrated effort to further expand our
maintenance business, which has more than doubled its revenues year
over year, and this recent award heightens our confidence that this
business will continue to grow at a healthy pace," continued Mr.
Bernhard. "Furthermore, our broadening maintenance operations also
present opportunities to expand the use of additional Shaw services
within our customer base across North America and internationally."
NRG Energy, Inc. owns and operates a diverse portfolio of
power-generating facilities, primarily in the United States. Its
operations include competitive energy production and cogeneration
facilities, thermal energy production and energy resource recovery
The Shaw Group Inc. is a leading provider of consulting,
engineering, construction, remediation and facilities management
services to government and private sector clients in the
environmental, infrastructure and homeland security markets. Shaw is
also a vertically integrated provider of comprehensive engineering,
consulting, procurement, pipe fabrication, construction and
maintenance services to the power and process industries worldwide.
The Company is headquartered in Baton Rouge, Louisiana and employs
approximately 14,800 people at its offices and operations in North
America, South America, Europe, the Middle East and the Asia-Pacific
region. Additional information on The Shaw Group is available at
The Private Securities Litigation Reform Act of 1995 provides a
"safe harbor" for certain forward-looking statements. The statements
contained herein that are not historical facts (including without
limitation statements to the effect that the Company or its management
"believes," "expects," "anticipates," "plans," or other similar
expressions) and statements related to revenues, earnings, backlog, or
other financial information or results are forward-looking statements
based on the Company's current expectations and beliefs concerning
future developments and their potential effects on the Company. There
can be no assurance that future developments affecting the Company
will be those anticipated by the Company. These forward-looking
statements involve significant risks and uncertainties (some of which
are beyond our control) and assumptions and are subject to change
based upon various factors. Should one or more of such risks or
uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those
projected in the forward-looking statements. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise. A description of some of the risks and uncertainties that
could cause actual results to differ materially from such
forward-looking statements can be found in the Company's reports and
registration statements filed with the Securities and Exchange
Commission, including its Form 10-K and Form 10-Q reports, and on the
Company's web-site under the heading "Forward Looking Statement".
These documents are also available from the Securities and Exchange
Commission or from the Investor Relations department of Shaw. For more
information on the company and announcements it makes from time to
time on a regional basis visit our web site at www.shawgrp.com.
SOURCE: The Shaw Group Inc.
The Shaw Group Inc., Baton Rouge
Laurie LaChiusa, 225-932-2500
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