Mubasher: Phoenix Power on Sunday said it has reached a settlement agreement in the case filed against it by Daewoo E&C.

This agreement “obliged” the Omani firm to pay $11.8 million to the engineering, procurement and construction (EPC) contractor Daewoo, the company said in a filing to the Muscat Securities Market (MSM).

In May, Phoenix Power said that after settling the claim, its future profit distribution was likely to be affected.

It is unlikely that this claim will negatively affect the power company’s profit-and-loss account for 2017 and afterwards, the MSM-listed company added.

Phoenix Power losses increased 114.3% in the first quarter of 2017 to reach OMR 12 million, compared to OMR 5.6 million in Q1-16.