Seatrium has agreed to pay US$68 million ($91.6 million) to MH Wirth as the full and final settlement over contracts that were terminated in 2021 and 2022.
This will “resolve the interest payable and all outstanding issues arising from the award” with MH Wirth, says Seatrium in a May 21 bourse filing.
However, the sum is in addition to the US$108 million the Singapore International Arbitration Centre had ordered Seatrium to pay in April.
In 2012, Jurong Shipyard, now a Seatrium subsidiary, awarded MH Wirth drilling equipment contracts related to four offshore rigs. Jurong Shipyard reached a settlement deal with Sete Brasil in 2019 and these contracts were terminated after years of suspension.
MH Wirth had filed for arbitration in December 2021 over the four terminated contracts.
Seatrium will release its results for 1QFY2024 ended March 31 on May 28 before trading opens.
See also: Seatrium to pay US$108 million to vendor following arbitration ruling
Shares in Seatrium closed flat at $1.56 on May 21. Seatrium completed a 20-to-1 share consolidation prior to the market open on May 9.
