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Litigation Settlement in relation to the Final Power Claim 31 May 2017


Phoenix Power Company SAOG (the “Company”) advises the Capital Market Authority, the Muscat Securities Market and the investors’ community that further to the statements made by the Company in its IPO Prospectus concerning the litigation instigated by Daewoo Engineering & Construction Co. Ltd. (the “EPC Contractor”) against the Company relating to the delay of Final Power (the “Claim”), the Company announces that an agreement to settle the Claim has been reached between the two parties.

The settlement agreement obliges the Company to pay a settlement sum of $11.8M to the EPC Contractor.

The Company clarifies that in settling the Claim, the Company’s ability to pay dividends to shareholders will be impacted from January 2018

The settlement is not likely to have an adverse impact on the Company’s profit and loss statement for 2017 and onwards.