SINGAPORE - Oilfield services provider Baker Technology on Friday (Aug 23) said that a claim of about US$3.7 million against its subsidiary, CH Offshore, will have a material impact on the company's cash reserves and profitability for the current financial year.
CH Offshore is a vessel chartering firm, and the claim follows an arbitration brought about by three ship brokers for unpaid brokers' commissions and damages.
Baker Technology noted that in the first final arbitration award made by the arbitration tribunal, the tribunal, in a 2-1 decision held in favour of the claimants, dismissed CH Offshore's counterclaims.
The final amount due to the claimants will be determined following the service of further submissions to the tribunal, the company said.
It added that the board will make the necessary announcements to update shareholders when the final arbitral award has been determined.
Shares in Baker Technology closed at 42.5 cents on Thursday, up 1.2 per cent, or 0.5 cent.