General – Dispute Settlement
Maersk has settled a dispute over the cancellation of a $475 million contract for a wind turbine installation vessel that was nearly 99% complete and due to be used for work at Equinor’s Empire Wind project.
Seatrium and the buyer have reached an agreement for Seatrium to deliver the vessel and Maersk to take delivery of the vessel by 28 February 2026.
Upon delivery, Maersk shall pay the balance of the Contract Price being the sum of US$360 million (subject to adjustments in accordance with the Contract).
The parties have mutually agreed for the buyer to pay part of the Contract Price (US$250 million) using an interest-bearing credit arrangement extended to the buyer by Seatrium.
The credit arrangement is for up to 10 years and repayable through cash generated by the vessel. Seatrium will have a mortgage over the vessel, as well as first priority rights over the vessel and the buyer’s bank accounts.
In light of the above, the parties will withdraw and discontinue all legal proceedings (i.e. Maersk’s Arbitration and SEI’s Arbitration), and the contract is in full force and effect.
The matter is not expected to have any material impact on the net tangible assets and earnings per share of the Company for the current financial year ending 31 December 2025.
Collaborative efforts were advanced by the willingness of all parties critical to the Vessel’s operability to be practical, find alignment, and work collectively towards the target of the delivery of the vessel.
