Shares in John Wood Group PLC plummeted after the company said it expects to report a US$100mln exceptional charge in its full-year results for 2021 on the Aegis Poland project.
The project, which involves the construction of buildings to house the Aegis Ashore anti-missile defence facility for the US Army Corps of Engineers, is a legacy from Wood Group's acquisition of Amec Foster Wheeler.
The provider of services to the oil and gas and power generation industries said the charge reflects an updated assessment of expected recovery from the customer and the legal costs needed to achieve such recovery, together with increased cash costs of around US$20mln to complete the project.
The project is expected to be operationally complete in the second half 2022, it added.
It estimated the loss at completion will be US$222mln, revised up from its previous estimate at US$133mln.
The company said its results for 2021, originally due to be published on 8 March 2022, will be delayed due to an external review.
It added that its forecast for underlying results for 2021 and its outlook for 2022 are unchanged.
Shares slumped 11.2% to 200.00p in midmorning trade.