Malaysian conglomerate says Sime Darby paid $41.9m to Maersk Oil Qatar as final settlement
Malaysian conglomerate Sime Darby Bhd said its engineering
unit has reached a settlement agreement with Maersk Oil Qatar A/S which will
see it relieved of all outstanding works under a contract signed in 2007.
The plantations-to-property group said Sime Darby
Engineering Sdn Bhd paid $41.9 million to Maersk Oil Qatar as final settlement
for a project known as Block 5 Development Plan 2005.
Sime Darby will write back about 100 million ringgit ($33
million) to its profit and loss account as a result of the settlement
agreement, it said in a statement on Wednesday.
The conglomerate had previously made provisions totaling 2.1
billion ringgit for its energy and utilities division, and the Maersk contract
had been identified as one of the problem projects contributing to Sime Darby's
first-ever quarterly loss.
Sime has rebounded to profitability in the last two