Seatrium settles Brazil corruption case; S$168.4 million financial penalty to Brazilian authorities

[SINGAPORE] Seatrium has on Wednesday (Jul 30) signed a leniency agreement with Brazilian authorities in relation to Operation Car Wash – a major corruption investigation in the country.

It will make a final settlement payment of around S$168.4 million under the leniency agreement.

This news comes one day before it is due to announce its first-half earnings on Jul 31.

Additionally, Seatrium is required to pay a financial penalty of US$110 million under a deferred prosecution agreement (DPA) it signed on Wednesday with Singapore authorities, which is now subject to approval of the Singapore High Court.

The Singapore authorities have agreed for up to a maximum of US$53 million of the payments to be made by Seatrium to the Brazilian authorities to be credited against the financial penalty. Accordingly, the amount payable by Seatrium under the DPA will be US$57 million (equivalent to approximately S$73.3 million).  

The group called for trading of its shares to be halted with immediate effect on Wednesday morning, before market open. The trading halt has since been lifted.

Seatrium said that it had previously made provisions in its financial statements for the in-principle settlement payment and financial penalty. Hence, there is no material impact on the net earnings and net tangible asset per share of the Group for the financial year ending 31 December 2025.

Seatrium shares closed at S$2.38 on Tuesday.

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