Kuwaiti logistics firm Agility will continue to provide services to a US defence agency until August 2011 after winning a six-month contract extension, with estimated revenues of $19m.
In a statement to the bourse, Agility said the Defense Logistics Agency (DLA) had extended its contract for six months, starting March 1, to provide warehouse management services to support operations in the Middle East and Southwest Asia.
The DLA is part of the US Department of Defence and provides logistics support to military services and to several civilian agencies and foreign countries, its website says.
Agility has been embroiled in a long-standing legal dispute with the US government after a criminal case was filed in November 2009 when prosecutors accused it, formerly Public Warehousing Co, of overcharging.
The claims related to about $8.5bn in food contracts first signed at the start of the Gulf War in 2003.
Agility has long argued that it regards the entire case as a contract dispute that should be settled through negotiation. In January, it denied that a new civil case had been filed against the firm.
Shares in Agility were trading 4.9 percent lower at 0730 GMT, underperforming the Kuwait bourse which slips 2.5 percent as jittery investors respond to the growing regional political unrest over the weekend.For all the latest transport news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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