Seatrium's attempt to block $162.05m payment fails in court

The company does not expect any adverse effect.

Seatrium has announced that its appeal to block a S$162.05m (US$126.6m) standby letter of credit (SBLC) payment has been dismissed by the court.

Following this development, the company said in a bourse filing that “the customer is now entitled to payment under the SBLC.”

Seatrium said in a November 2024 announcement that it “had previously assumed certain potential claims relating to a rig contract where the original contract value was adjusted for cost escalation, and where the validity of the contract value adjustments was subsequently challenged.”

“The Seatrium entity will continue to pursue its claims in arbitration to resolve the contractual dispute with the customer and seek recovery of this payment,” the company said

Seatrium has said that provisions had already been made in its accounts for the full amount payable under the SBLC.

It does not expect any adverse impact on its consolidated earnings per share or net tangible assets per share for the financial year ending 31 December 2025 arising from full payment under the SBLC.

US$1 = S$1.28