£60m loss for McColl’s Ferguson Marine amid ferry dispute
CaMac ferry: the company is in dispute
Scottish tycoon Jim McColl’s shipbuilding firm Ferguson Marine said it expects to lose £39.5 million on the deal for two CalMac ferries.
The Inverclyde company made a loss of £60.1m in 2016, according to delayed accounts, and blamed the losses on “interference and disruption” from the Scottish Government’s ferry company Caledonian Maritime Assets Ltd (CMAL).
Mr McColl, an adviser to First Minister Nicola Sturgeon, rescued the last commercial shipbuilder on the Clyde from administration in 2014, saving approximately 150 jobs. He wants to renegotiate a £45m Government loan.
A spokesman for the company said: “In our latest published accounts, we have provided for identified cost overruns, in line with accepted accounting standards.
“These cost overruns are a direct result of the unforeseen complexities of building the two prototype, first in class, dual fuel LNG vessels for our client, CMAL.
“We fully expect to recover the costs identified and are subsequently in discussions with professional claims experts with the aim of submitting a formal claim to CMAL within the next few weeks.
“We firmly believe that following a period of remarkable transformation, which has seen significant investment into the yard’s facilities and workforce, Ferguson Marine Engineering Limited is now well placed to embark on an exciting phase of sustained growth.”
CMAL has said previously that Ferguson Marine “entered into the contract with full and prior knowledge of the specification and terms of the contract. CMAL fundamentally disagrees with any assertion that there have been significant design changes to the vessels. Minor changes have followed the contractual process and costs for these have been agreed with FMEL.”