German solar machinery maker, Centrotherm International, (FRA:CTNK) said, on Thursday, it will cut its profit forecast for the year 2017, as it will be obliged to pay to the Algerian Electricity and Gas Engineering Company CEEG Spa.
Earlier in 2013 CEEG cancelled an order for construction of a solar module plant in Algeria.
The project’s amount estimated at, 290 million Euroes (USD 344m), has been awarded to a consortium of Centrotherm and Kinetics Germany GmbH.
Centrotherm at the time has just exited insolvency proceedings.
CEEG Spa has won arbitration case and is to receive 11 million Euros in damages and legal costs from the project consortium.
Centrotherm said the full impact of this is under evaluation.
The German solar technology firm will keep its revenue target of EUR 120 million-160 million for 2017, it noted.
In 2016 it recorded revenues of 144.4 million Euros and a net loss of 6.06 million Euros.