BATON ROUGE, La., Oct 11, 2002 (BUSINESS WIRE) -- The Shaw Group Inc.
(NYSE:SGR) ("Shaw" or "the Company") announced today that, as reported in PG&E;
Corp.'s Current Report on Form 8-K filed with the U.S. Securities and Exchange
Commission on October 10, 2002, PG&E; National Energy Group ("NEG") has notified
the lenders for the Harquahala and Covert projects that it does not intend to
make further equity contributions for these projects and is in negotiations with
its lenders to fund completion of these projects. Shaw, through its subsidiary
Stone & Webster, Inc., is the EPC contractor on the Harquahala and Covert
projects. Shaw is in discussions with NEG, and expects to enter into discussions
with its lenders, with the intent of receiving adequate assurances that funding
will be available to complete the projects.
Shaw believes that, in any event, its lien rights and the value to be realized
from an orderly disposition of the assets will cover its current exposure
relating to the projects.
If NEG or the lenders fail to fund the completion of the projects, there will be
a material adverse effect on Shaw's ability to meet its current earnings
expectations for fiscal year 2003.
The Shaw Group Inc. is the world's only vertically-integrated provider of
comprehensive engineering, procurement, pipe fabrication, construction and
maintenance services to the power, process and environmental & infrastructure
sectors. Shaw is headquartered in Baton Rouge, Louisiana, and currently has
offices and operations in North America, South America, Europe, the Middle East
and Asia-Pacific. Shaw employs more than 20,000 people annually. Additional
information on The Shaw Group is available at www.shawgrp.com.
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
CONTACT: The Shaw Group Inc., Baton Rouge
Christine N. Mollere, 225/932-2500
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