Daewoo E&C Amends Nigeria LNG Train 7 Contract Extension, Secures Major EPC Project Driving Long-Term Revenue Growth

Daewoo E&C announced an amendment to its single sales and supply contract for the Nigeria LNG Train 7 project, indicating that the contract end date is under negotiation. The original end date was June 13, 2026, but will be re-disclosed upon finalization.
This contract covers Daewoo's foreign work portion with a contract value of approximately 483.1 billion KRW, representing 5.58% of its 2019 consolidated sales. The total project value is large with Daewoo's share at 40%.
This EPC project involves constructing an 8 million ton per year LNG liquefaction plant on Bonny Island, Nigeria, expected to contribute long-term revenue. However, the contract extension negotiations indicate potential schedule delays.
[AI Summary]Daewoo E&C secures a major EPC contract for Nigeria LNG Train 7, providing multi-year revenue visibility without equity dilution or new capital needs. The contract extension negotiations suggest possible schedule risks but overall the project strengthens Daewoo's order backlog and growth profile.