SINGAPORE - Mainboard-listed Singapore Technologies Engineering announced on Monday that its wholly-owned unit VT Halter Marine has asserted counterclaims against a company in an ongoing arbitration proceeding in the United States.
The arbitration proceedings involve issues and disputes arising from a vessel construction agreement in 2011 between VT Halter Marine, the unit, and Hornbeck Offshore Services. VT Halter Marine designed and built certain vessels for Hornbeck under the agreement.
Hornbeck had claimed damages against VT Halter Marine on the basis that the vessels it constructed had alleged errors in design and construction.
ST Engineering noted that out of the damages claimed, the amount that was initially quantified by Hornbeck was about US$15.2 million (about S$21.4 million).
This was subsequently revised to about US$43.5 million, according to Hornbeck's preliminary damage calculation received by VT Halter Marine in December 2016.
"Following this, VT Halter Marine and its legal advisers took time, effort and due diligence to consider and assess the revised sums claimed as well as the potential defences," said ST Engineering.
"VT Halter Marine has asserted counterclaims against Hornbeck for approximately US$3.3 million and will continue to vigorously defend its position."
The integrated defence and engineering group added there is no change to its full year results for the financial year ended December 31 last year, which were released on February 16.
ST Engineering shares closed flat at S$3.69 on Monday, before the announcement was made.