Link: https://links.sgx.com/1.0.0/corporate-announcements/49XCNDFHPJXD75HI/6d4d8f370792f7b2319a0cd241820436c9d2ce7b63f30449bfc26c2425e5071b

Summary:

• Keppel Ltd. has commenced arbitration proceedings against Seatrium Limited (formerly Sembcorp Marine Ltd) to claim approximately S$68.4 million under the "Keppel Indemnity."

• The indemnity relates to Seatrium’s leniency agreements with Brazilian authorities regarding Operation Car Wash, which require Seatrium to pay about BRL 728.9 million (~S$168.4 million) as final settlement.

• Keppel’s claim follows the completion of the 2023 combination of Keppel Offshore & Marine Ltd and Seatrium. The claim amount was set as part of the combination framework.

• If not paid within 60 days, the settlement sum will accrue further inflation/currency adjustments.

• Arbitration will be held in Singapore under the rules of the Singapore International Arbitration Centre.

• Seatrium has publicly indicated it will contest Keppel's claim.

• The development is not expected to have a material impact on Keppel’s earnings or net tangible assets per share for FY ending 31 Dec 2025.