ST Engineering said Wednesday arbitration proceedings between its wholly-owned U.S. marine subsidiary VT Halter Marine and Hornbeck Offshore Services resulted Hornbeck being awarded US$18.03 million, or around S$24.6 million for its claims.
VT Halter Marine was awarded US$2.13 million, or around S$2.9 million for its counterclaims, ST Engineering said in a filing to SGX.
The arbitration proceedings were over disputes from a 2011 vessel construction agreement for VT Halter Marine to design and build certain vessels for Hornbeck, which had claimed damages of around US$48.7 million, largely on the claim the vessels had alleged errors in design and construction, ST Engineering said.
VT Halter Marine had counter-claimed around US$2.4 million against Hornbeck, the filing said.
After the arbitration decision, the net amount payable to Hornbeck is US$15.90 million, or around S$21.7 million, ST Engineering said, adding it has already made provisions for around S$7.5 million. Another S$14.2 million in provisions will be made in the financial statements for the period ended 30 September, the company said.
