EXHIBIT 99.1
SHAW NOTIFIED OF PROJECT SUSPENSION BY MIRANT
Baton Rouge, Louisiana, August 8, 2002 - The Shaw Group Inc. (NYSE: SGR) ("Shaw"
or "the Company") today announced that its subsidiary, Stone & Webster, Inc.,
was notified by its client, Mint Farm Generation, LLC, a subsidiary of Mirant
Corporation (Mirant), that Mirant was suspending construction on the Mint Farm
project located in Longview, Washington. Under the notice, Mirant will instruct
the Company over the next few days as to which part of the work may proceed to
completion or to a stable point of construction. Mirant has indicated that it
expects engineering will continue through completion.
Construction on Mint Farm, a 270 MW combined-cycle gas fired power plant, was
started in October 2001 and completion was scheduled for June 2003. At the time
of suspension, the project was approximately 34 percent complete.
The Mint Farm project represented $93.1 million of Shaw's backlog as of July 31,
2002. The Company believes this suspension will not have a material effect on
Shaw's earnings for the fourth quarter of fiscal 2002; however, the Company is
revising its previous earnings guidance for fiscal year 2003 from a range of
$2.90 to $3.18 per share to a range of $2.72 to $3.00 per share.
In response to numerous recent inquiries from the investment community, the
Company is providing the following details relating to its domestic engineering,
procurement and construction (EPC) power projects in backlog for clients whose
credit ratings are below investment grade. These projects are being performed
for project entities which are subsidiaries of the referenced companies.
o AES CORPORATION
WOLF HOLLOW, located near Granbury, Texas. A 730-megawatt
gas-fired combined-cycle power plant. This project is project
financed with an initial start-up date of January 2003.
Approximately $40.7 million remained in Shaw's backlog as of July
31, 2002 and the project is approximately 85 percent complete.
o MIRANT CORPORATION
APEX 1, located near Las Vegas, Nevada. A 550-megawatt gas-fired
combined-cycle power plant. This project is balance sheet financed
with an initial start-up date of March 2003. Approximately $48.6
million remained in Shaw's backlog as of July 31, 2002 and the
project is approximately 72 percent complete.
MINT FARM, located near Longview, Washington. A 270-megawatt
gas-fired combined-cycle power plant. This project is balance
sheet financed with an initial start-up date of June 2003.
Approximately $93.1 million remained in Shaw's backlog as of July
31, 2002 and the project is approximately 34 percent complete.
o PG&E NATIONAL ENERGY GROUP
COVERT, located near Covert, Michigan. An 1,100-megawatt gas-fired
combined-cycle power plant. This project is financed under a bank
facility covering four projects: Covert (Shaw), Harquahala (Shaw),
Athens (Bechtel), Millennium (Operating Plant). Start-up date for
the project is July 2003. Approximately $383.9 million remained in
Shaw's backlog as of July 31, 2002 (including approximately $209
million of owner pass through equipment) and the project is
approximately 40 percent complete.
HARQUAHALA, located near Tonopah, Arizona. An 1,100-megawatt
gas-fired combined-cycle power plant. This project is financed
under a bank facility covering four projects: Covert (Shaw),
Harquahala (Shaw), Athens (Bechtel), Millennium (Operating Plant).
Start-up date for the project is June 2003. Approximately $326.6
million remained in Shaw's backlog as of July 31, 2002 (including
approximately $182 million of owner pass through equipment) and
the project is approximately 55 percent complete.
o NRG ENERGY, INC.
BAYOU COVE, located near Jennings, Louisiana. A 320-megawatt
gas-fired simple-cycle power plant. This project is balance sheet
financed with an initial start-up date for the project in the Fall
of 2002. Approximately $8.2 million remained in Shaw's backlog as
of July 31, 2002 and the project is approximately 95 percent
complete.
The Shaw Group Inc. is the world's only vertically-integrated provider of
comprehensive engineering, procurement, pipe fabrication, construction and
maintenance services to the power, process and environmental & infrastructure
sectors. Shaw is headquartered in Baton Rouge, Louisiana, and currently has
offices and operations in North America, South America, Europe, the Middle East
and Asia-Pacific. Shaw employs more than 20,000 people annually. Additional
information on The Shaw Group is available at www.shawgrp.com.
For additional information, please contact Christine N. Mollere, Vice President
of Corporate Communications, at (225) 932-2500.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for certain forward-looking statements. The statements contained herein that are
not historical facts (including without limitation statements to the effect that
the Company or its management "believes," "expects," "anticipates," "plans," or
other similar expressions) and statements related to revenues, earnings,
backlog, or other financial information or results are forward-looking
statements based on the Company's current expectations and beliefs concerning
future developments and their potential effects on the Company. There can be no
assurance that future developments affecting the Company will be those
anticipated by the Company. These forward-looking statements involve significant
risks and uncertainties (some of which are beyond our control) and assumptions
and are subject to change based upon various factors. Should one or more of such
risks or uncertainties materialize, or should any of our assumptions prove
incorrect, actual results may vary in material respects from those projected in
the forward-looking statements. The Company undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise. A description of some of the risks and
uncertainties that could cause actual results to differ materially from such
forward-looking statements can be found in the Company's reports and
registration statements filed with the Securities and Exchange Commission,
including its Form 10-K and Form 10-Q, reports and on the Company's web-site
under the heading "Forward Looking Statement". These documents are also
available from the Securities and Exchange Commission or from the Investor
Relations department of Shaw. For more information on the company and
announcements it makes from time to time on a regional basis visit our web site
at www.shawgrp.com.