KBR to re-state 2013 accounts

US contractor KBR is to re-state its accounts for 2013. It said it now expects to make a US$ 135 million pre-tax loss on a seven contracts to fabricate and assemble pipe modules in Canada, compared to the previously expected US£ 23 million profit.

The contracts are with third-party clients and are said not to impact on other KBR projects. They stem from a business unit in Edmonton, Canada where KBR says a rapid expansion resulted in increased internal and external costs. KBR added that most of the losses had already been incurred, however, it said the situation was on-going, so the amounts involved might change.

KBR chairman, Loren K Carroll said, “The KBR Board of Directors and management team take the accuracy and integrity of KBR financial statements very seriously. We are committed to conducting a thorough investigation and implementing corrective measures."

The company said it would file an amended annual report with the US Securities & Exchange Commission (SEC) as soon as possible, and said it would not file a report for the first quarter of 2014 until this was done.