Shaw raises forecasts on arbitration win

The Taiwan High Court has dismissed a lawsuit against Shaw Group and awarded it a US$ 29 million arbitration payment, prompting the company to raise its 2011 earnings guidance.

Shaw said as a result of the Taiwanese award it will record a gain of US$ 0.16 per share in the second quarter. The company also raised its adjusted earnings outlook for fiscal 2011 to a range of US$ 1.86 to US$ 1.96 per share from its prior outlook of US$ 170 to US$ 1.80 per share.

Shaw left its fiscal 2011 revenue forecast unchanged at US$ 6.5 billion.

The favourable ruling related to a lawsuit brought by Taiwan Power Company over the Lungmen Nuclear Power Project, designed and constructed by Shaw Group. Taiwan Power Company said it would not appeal the award.

The news comes after Shaw reported a net loss of US$ 16.4 million in the first quarter of 2011, a result which was affected by a charge of US$ 63.4 million from an unfavourable US lawsuit.