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Enerflex (New York Stock Exchange: EFXT) -23% in early trading on Wednesday after it said an unnamed client plans to terminate the contract for the development of the EH Cryo natural gas facility in Iraq's Kurdistan region following a nearby drone attack in April.
The company said it Enerflex notified its client of a force majeure event, suspended activity on site and demobilized its personnel, and then worked with the client to evaluate possible options to complete the project, despite the security situation, but Enerflex (EFXT) However, he received notification that the client still intended to complete the project as of September 8.
Enerflex (EFXT) said it will contest the termination, which it considers an unjustified attempt to circumvent its contractual rights to suspend the project while the site remains unsafe.
The company said construction of the EH Cryo project was 85% complete as of June 30, and unbilled net revenue assets recognized for the project totaled ~$160 million at the end of the second quarter.
