Singapore: SembCorp Marine has revealed that it will include a $258.7m charge in its fourth-quarter earnings as a consequence of losses due to unauthorised foreign exchange transactions. Although the original loss was estimated at $303m, the company, which owns Jurong Shipyard, has reached agreements with nine of the 11 banks to close out the transactions that involved US dollars and euros, writes Bloomberg.
"Jurong Shipyard deems it in its best interests to avoid incurring substantial time and expense to engage in complex litigation with these banks,'' SembCorp Marine said in a regulatory filing, adding "All commercial settlements were entered into without any admission on the part of Jurong Shipyard or the banks as to whether the unauthorized transactions were valid of binding on Jurong Shipyard.
SembCorp Marine is to charge $208m as an expense in fourth-quarter earnings and $50.7bn as a contingent liability in its results announced next week. [15/02/08]
Copyright © 2024. All rights reserved. Seatrade, a trading name of Informa Markets (UK) Limited. Add Seatrade Maritime News to your Google News feed.
