In compliance with the Rules and Guidelines of Disclosure, Sembcorp Salalah Power and Water Co SAOG (“the Company”), discloses the following:
On 20 August 2017, Gas Turbine #5 (GT5) tripped after generator protections acted. Since then the gas turbine has been opened for inspected by experts to assess the situation and its remediation.
On 04 of September, the management of the Company met with the experts conducting the assessment and representatives of the turbine’s manufacturer. The preliminary conclusion is that this is a major breakdown of the GT5 unit. The Company is expecting negative revenue impact of approximately Omani Rials 1.1 million. This is a preliminary estimation, as the total repair costs and durations cannot yet be precisely assessed at this point in time.
The Company has made the required notifications to insurance companies, and the damage claim process has been initiated. The Company has been and is taking all reasonable measures to mitigate the financial impact to the fullest extent possible.
The Company projects that this unexpected technical failure may affect the dividend for the year ending 31 December 2017.