Seatrium Limited has announced that the Singapore Court has dismissed its appeal to prevent a payment under a US$ 126.6m standby letter of credit (SBLC) related to a rig contract dispute. This decision entitles the customer to receive payment, which Seatrium had previously accounted for in its financial provisions. The company, however, plans to continue pursuing claims through arbitration to resolve the contractual dispute and seek recovery of the payment.
The litigation involves a majority-owned joint venture company of Seatrium, which inherited the case prior to a merger. The dispute centres on the validity of contract value adjustments due to cost escalation, which were challenged by the customer. Despite the court’s decision, Seatrium assures stakeholders that there will be no adverse impact on its consolidated earnings per share or net tangible assets per share for the financial year ending 31 December 2025.
Seatrium, a global player in offshore, marine, and energy engineering solutions, remains committed to updating stakeholders on any material developments in the legal proceedings. The company advises shareholders and potential investors to exercise caution and seek professional advice when dealing with its securities.
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