Keppel Corp announced that its Settlement Agreement with Sete Brasil is now effective. The subsidiaries of Keppel Offshore & Marine and Sete Brasil have agreed that EPC Contracts and all related agreements entered into shall be deemed to be amicably terminated with no need of any further acts and with no penalties, refunds and/or any additional amounts being due to any party, Keppel Corp announced.
Keppel Offshore & Marine will have full title and ownership to the works and equipment under the Discontinued EPC Contracts, and the remaining percentage of title and ownership to such works and equipment that have not been completed.
The amount of $259.4 million for the ECP contracts will be recognised as an undisputed debt due and owing by Sete Brasil. Keppel O&M and Sete Brasil are in discussions on assets that Sete plans to dispose.
The Settlement Agreement will not result in additional provisions nor have any material impact on the net tangible assets and earnings per share of Keppel Corp for FY2021 for the 12 months to Dec 31.
