The High Court of London has found MT Højgaard liable for the grouted connections on E.ON’s 180MW Robin Rigg Wind Farm.
The company will seek permission to appeal the ruling, but the ruling will have a negative effect on the financial result for 2014.
In 2007-2008, MT Højgaard designed, manufactured and installed foundations for the Robin Rigg Wind Farm off Scotland’s west coast. After deployment, weaknesses were discovered in the concrete structures (the technical term is ‘grouted connections’) as a result of errors in the applicable international standards issued and certified by DNV.
The wind farm client, E.ON Climate & Renewables, claimed that MT Højgaard was liable for the problem with the structures, but MT Højgaard denied liability arguing that the Group had observed the applicable international standards as required by the client.
Contrary to expectations, The High Court of London ruled that, even though MT Højgaard complied with the applicable international standards, MT Højgaard is liable due to a legal technicality in the contract. MT Højgaard will seek permission to bring the ruling before the Court of Appeal. The date for a decision on this remains uncertain. MT Højgaard’s financial result for 2014 is affected negatively with DKK 195 million in relation to this decision.
The Group maintains its forecast for 2014 which amounts to an operating profit (EBIT) of DKK 150-225 million before special items, corresponding to an EBIT margin of 2-3%.
Special items are now expected to amount to an expense of DKK 195 million and may still be affected by the outcome of old dispute cases, most of which are expected to be settled in 2014.
Press Release, April 18, 2014; Image: Natural Power