KUALA LUMPUR (April 7): Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) said its unit Malaysia Marine and Heavy Engineering Sdn Bhd (MMHE) had received an arbitration notice from Boskalis Malaysia Sdn Bhd (BMSB) on March 15 over the delay in the load out exercise.
BMSB, amongst others, was required to make available a vessel for the load out of the topside based on an agreed schedule, according to MHB in an exchange filing today.
However, BMSB had served the notice to MMHE claiming that there was a delay in the load out exercise onto the vessel and that it had allegedly incurred demurrage and standby costs between April 21 and July 20 2020.
“In the notice of arbitration, BMSB seeks from MMHE the alleged costs in the amount of US$11,954,475, together with interest and costs.
“MMHE disputes the claims and maintains that MMHE had fully observed the provisions of the subcontract at all times.
“BMSB’s claims are not consistent with the subcontract and/or in law. Further, the events and circumstances during the claim period were fully known to BMSB and there was no delay on MMHE’s part during the said Period that will entitle BMSB to any compensation,” said MHB.
Following this, MHB said MMHE will vigorously defend the claims.
MHB said the financial impact of the arbitration is dependent on the outcome, adding that no operational impact is expected to arise from the claims.
“MHB will continuously update shareholders of any material impact to MHB Group’s business and financial results for the financial year ending 2021 as a result of this arbitration,” it added.
Shares of MHB settled one sen or 0.77% lower at 65 sen with some 882,500 shares changing hands. This gave the group a market capitalisation of RM1.03 billion.
