Turbine breakdown in Oman to cost Sembcorp $2.9m

Sembcorp Salalah Power and Water expects the breakdown of its Gas Turbine #5 to result in a negative revenue impact of approximately $2.86m

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Sembcorp Salalah Power and Water’s Gas Turbine #5 suffered a major breakdown in August [representational image].
Sembcorp Salalah Power and Water’s Gas Turbine #5 suffered a major breakdown in August [representational image].

Sembcorp Salalah Power and Water has revealed that its Gas Turbine #5 (GT5) suffered a major breakdown in August.

The turbine was subsequently opened for inspection and, on 4 September, the firm’s senior management met with the turbine’s manufacturer.

As a result of the incident, Sembcorp expects to incur a negative revenue impact of approximately $2.86m (OMR1.1m), according to a statement issued to Muscat Securities Market (MSM).

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It emphasised that this is a preliminary estimation, as the total repair costs and durations cannot yet be precisely assessed.

Sembcorp added that it has made the required notifications to insurance companies, and that the damage claim process has been initiated.

The unexpected technical failure may affect the dividend for the year ending 31 December, 2017, according to the firm.

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