Seatrium to pay $168m to Brazilian authorities, $73m to Singapore authorities to settle corruption case
Source: Straits Times
Article Date: 31 Jul 2025
Author: Sue-Ann Tan
The deferred prosecution agreement, signed on July 30 with the Singapore authorities, is subject to approval by the Singapore High Court.
Singapore-listed Seatrium will pay financial penalties to the Brazilian and Singapore authorities totalling $241.7 million to settle a long-drawn corruption probe in Brazil.
The offshore and marine company, which was then Sembcorp Marine, became implicated in Operation Car Wash, a major corruption scandal in Brazil, which involved allegations of paying bribes to secure contracts.
It made the announcement on July 30, a day before the company is due to release its earnings for the first half of the 2025 financial year.
In a filing to the Singapore Exchange on July 30, Seatrium said it has signed a leniency agreement with Brazil's public prosecutor's office and will sign an equivalent agreement with other authorities, under both of which it will pay a final settlement of around $168.4 million.
It was also required to pay a penalty of US$110 million (S$141.5 million) to the Singapore authorities, under a deferred prosecution agreement entered with the Attorney-General's Chambers (AGC) in Singapore.
However, the AGC has agreed for up to a maximum of US$53 million of the payment to the Brazilian authorities to be credited against the financial penalty here. As such, the amount payable by Seatrium under the deferred prosecution agreement will be US$57 million (S$73.3 million).
The deferred prosecution agreement, signed on July 30 with the Singapore authorities, is subject to approval by the Singapore High Court.
With this announcement, Seatrium said that the Monetary Authority of Singapore and the Singapore police's Commercial Affairs Department have concluded their joint investigations into potential offences.
'No action will be taken against the company and/or its officers,' Seatrium said.
The AGC in a separate announcement on July 30 said that Seatrium will be required to review and make further improvements to its ethics and compliance programme to reduce the risk of a recurrence of any similar conduct.
If Seatrium subsequently fails to comply with the terms of the deferred prosecution agreement as approved by the High Court, the public prosecutor may apply to the High Court to terminate the agreement.
In that event, the public prosecutor may initiate criminal proceedings against Seatrium in respect of the alleged offences.
Seatrium shares rose 0.84 per cent, or two cents, to $2.40 at the close on July 30, after the announcements.
This is after the company lifted a trading halt around 11.20am that it had called for before the market opened earlier.
The company said in its July 30 statement that it has made provisions in its financial statements for the in-principle settlement payment and financial penalty.
'Following the finalised agreements with the Brazilian and Singapore authorities, the company has reversed a provision of $14 million in its financial statements for the financial period ended June 30 to take into account the finalised settlement payment and financial penalty, current exchange rates and other expenses,' it added.
'There is therefore no material impact on the net earnings and net tangible asset per share of the group for the financial year ending Dec 31.'
Seatrium added that it is 'keen to move forward' and to ride on the energy market tailwinds to create transformative offshore energy solutions globally and ultimately deliver long-term sustainable growth.
'The company wishes to emphasise that it remains committed to the highest standards of corporate governance and business integrity, including zero tolerance for fraud, bribery and corruption,' it said.
It added that it has put robust policies and procedures in place to instil the highest standards of discipline, ethics and compliance across its global operations.
Morningstar analyst Lee Chok Wai, who is also director of equity research, said the outlook for the offshore industry remains positive.
'We expect a gradual margin recovery for Seatrium as it learns from previous project cost overruns and focuses on series-build projects to improve cost-efficiencies,' he said.
He added that the long-term prospects for Seatrium are still looking bright. The analyst's fair value estimate for the stock stands at $2.92, which still indicates an attractive upside for the shares, he said.
Source: The Straits Times © SPH Media Limited. Permission required for reproduction.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
12 minutes ago
- Business Times
Tesla ordered by Florida jury to pay US$243 million in fatal Autopilot crash
[NEW YORK] A Florida jury on Friday (Aug 1) found Tesla liable to pay US$243 million to victims of a 2019 fatal crash of an Autopilot-equipped Model S, a verdict that could encourage more legal action against Elon Musk's electric vehicle (EV) company. The verdict is a rare win for victims of accidents involving Autopilot. Musk has been pushing to rapidly expand Tesla's recently launched robotaxi business based on an advanced version of its driver assistance software. Tesla shares fell 1.8 per cent on Friday, and are down 25 per cent this year. Jurors in Miami federal court awarded the estate of Naibel Benavides Leon, as well as her former boyfriend Dillon Angulo, US$129 million in compensatory damages plus US$200 million in punitive damages, according to a verdict sheet. Tesla was held liable for 33 per cent of the compensatory damages, or US$42.6 million. Jurors found the driver George McGee liable for 67 per cent, but he was not a defendant and will not have to pay his share. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Tesla designed Autopilot only for controlled-access highways yet deliberately chose not to restrict drivers from using it elsewhere, alongside Elon Musk telling the world Autopilot drove better than humans,' Brett Schreiber, a lawyer for the plaintiffs, said. 'Today's verdict represents justice for Naibel's tragic death and Dillon's lifelong injuries,' he added. Tesla said it will appeal. 'Today's verdict is wrong and only works to set back automotive safety and jeopardise Tesla's and the entire industry's efforts to develop and implement life-saving technology,' the company said. The plaintiffs had sought US$345 million of damages. Their lawyers said that the trial was the first involving the wrongful death of a third party resulting from Autopilot. Impact on future cases Tesla has faced many similar lawsuits over its vehicles' self-driving capabilities, but they have been resolved or dismissed without getting to trial. In June, a judge rejected Tesla's bid to dismiss the Florida case. Experts said on Friday's verdict may spur more lawsuits, and could make future settlements more costly. 'It's a big deal,' said Alex Lemann, a law professor at Marquette University. 'This is the first time that Tesla has been hit with a judgment in one of the many, many fatalities that have happened as a result of its Autopilot technology.' The verdict could also impede efforts by Musk, the world's richest person, to convince investors that Tesla can become a leader in so-called autonomous driving for private vehicles as well as robotaxis it plans to start producing next year. As Tesla's electric vehicle sales fall, much of its nearly US$1 trillion market value hinges on Musk's ability to pivot the company into robotics and artificial intelligence. Driver's role The trial concerned an Apr 25, 2019, incident where George McGee drove his 2019 Model S at about 100 kph through an intersection into the victims' parked Chevrolet Tahoe as they were standing beside it on a shoulder. McGee had reached down to pick up a cellphone he dropped on his car's floorboard and allegedly received no alerts as he ran a stop sign and stop light before hitting the victims' SUV. Benavides Leon was allegedly thrown 23 metres to her death, while Angulo suffered serious injuries. 'We have a driver who was acting less than perfectly, and yet the jury still found Tesla contributed to the crash,' said Philip Koopman, a Carnegie Mellon University engineering professor and expert in autonomous technology. 'The only way the jury could have possibly ruled against Tesla was by finding a defect with the Autopilot software,' he added. 'That's a big deal.' Tesla, in its statement, said McGee was entirely at fault. 'To be clear, no car in 2019, and none today, would have prevented this crash,' the company said. 'This was never about Autopilot; it was a fiction concocted by plaintiffs' lawyers blaming the car when the driver, from day one, admitted and accepted responsibility.' REUTERS
Business Times
42 minutes ago
- Business Times
Carvana's 10,000% rally from low deals US$7 billion blow to shorts
[NEW YORK] Carvana's shares notched an all-time high this week, rising more than 10,000 per cent from a low in late 2022, and delivering a blow to investors betting against the online used-car dealer. The jump to record caps a roller-coaster ride for the stock that quickly became an investor darling after a public debut in 2017, but has also been plagued by criticisms ranging from claims that the company was overvalued and allegations of lax business practices. The latest gains came after the company's blockbuster second-quarter results on Wednesday (Jul 30) fuelled expectations that a turnaround is taking hold at the embattled company. As a result of the rally, short investors betting against Carvana have been dealt a US$7.42 billion blow in mark-to-market losses since the end of 2022, according to calculations from S3 Partners. About 10 per cent of the company's free float is currently held short, down from 55 per cent on Dec 27, 2022, when the stock had dropped to its lowest level. 'This rally from the lows has turned Carvana into one of the most spectacular recoveries in modern market history and a brutal reminder of how dangerous shorting stocks like this can be,' said Dave Mazza, CEO at Roundhill Financial. Carvana shares closed 5.7 per cent lower on Friday, retreating from Thursday's record but still ending the week more than 10 per cent higher. Carvana's online platform allows customers to buy a used car without getting up from their couch, a business model that attracted immense interest during the Covid-19 pandemic. The share price quickly skyrocketed, followed by a brutal 99 per cent wipeout during the wider tech sell-off that ensued. But now, as the appetite for riskier stocks and growth assets has come roaring back over the past month, Carvana is in the right spot to benefit. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'Before Gamestop, a move like this would have been impossible,' said Mark Hackett, chief strategist at Nationwide Funds Group, referring to the retail-trading-driven mania involving risky stocks that gripped the markets in 2021, and seems to be rearing its head again this year. 'But now it is common.' But it is not just the retail-trading fervour around growth stocks that's helping Carvana's shares, market watchers say. Carvana's online business model helps to differentiate it from other auto dealers, who largely operate brick-and-mortar stores, and that has given the relative upstart a higher valuation multiple. At the same time, the trade policy chaos unleashed by US President Donald Trump's tariff programme has been a boon to used-car sellers, who saw demand rise as consumers try to avoid the steep new levies. On Wednesday, Carvana reported second-quarter results that included record-setting revenue, propelling the stock to a breakout above 2021's prior record high. Nationwide's Hackett said that tariff-driven margin benefit was the main source of growth during the quarter. As Carvana soared from the 2022 low, its more traditional peers, such as CarMax, AutoNation and Lithia Motors, have seen no such surge. CarMax shares have fallen about 7 per cent over the same period as at Friday's close, while AutoNation climbed nearly 80 per cent and Lithia rose 44 per cent. After the latest results, some analysts see more strength ahead for Carvana. 'Investors haven't yet witnessed Carvana's true earnings power,' said Alexander Potter, analyst at Piper Sandler. BLOOMBERG
Straits Times
an hour ago
- Straits Times
Columbia University to aid Trump policing of foreign students under deal
Sign up now: Get ST's newsletters delivered to your inbox Columbia confirmed it will report arrest information to the Student and Exchange Visitor Information System. Beyond the US$221 million that Columbia University will pay as part of its settlement with the White House, the school also accepted new requirements that threaten to sour its relationship with a crucial source of talent and revenue: foreign students. Under the terms of last week's agreement, the university will take on new duties to help the government police international students, said a university official with knowledge of the deal's repercussions. That includes reporting even minor offenses such as trespassing – a common charge for student protesters – that previously were resolved without involving federal authorities. The changes highlight the stepped-up scrutiny foreign students will face, as well as the increased administrative burden the Ivy League school has shouldered to reclaim its federal funding. The university also agreed to take steps to reduce its financial dependence on foreign students, share more information on its student-visa holders and review its international admissions process. International students are already uncertain about their future, with worries spurred by immigration detentions on campus and US officials' attempts to revoke student visas – a campaign that began at Columbia and spread nationwide. The new measures are poised to bring more potentially unsettling changes to a school where almost 40 per cent of students are from outside the US. 'That's one of the most significant changes in this,' said professor at Boston College's Center for International Higher Education Chris Glass, referring to Columbia's settlement. 'It puts the university in an unprecedented and precarious position of being an institution that guards intellectual freedom but also has obligated itself to fulfill reporting responsibilities to the federal government.' In a statement on Aug 1, Columbia confirmed it will report arrest information to the Student and Exchange Visitor Information System (SEVIS) which all colleges that enroll foreign students must participate in. 'As part of the university's longstanding obligations as a participant in SEVIS, certain student information is required to be provided to the program, including disciplinary actions that result in expulsions or suspensions,' the university said. 'In addition to those longstanding requirements, Columbia will now also notify the program if it is made aware of arrest information.' Top stories Swipe. Select. Stay informed. World Trump deploys nuclear submarines in row with Russia World 'Optimistic' Bessent says US has makings of a deal with China Asia Asia-Pacific economies welcome new US tariff rates, but concerns over extent of full impact remain Singapore Man in SAF custody after allegedly vaping on bus while in army uniform Asia 'Like me? Approach me directly, okay?': Inside a matchmaking event for China's wealthy Opinion America is tearing down another great public institution Opinion Quiet zones in public spaces can help people recharge in the city Singapore Man arrested for allegedly shoplifting twice at Changi Airport Reportable offenses will include infractions such as trespassing, the charge on which 78 students were arrested in May after they occupied a university library in a pro-Palestinian demonstration. 'This is all in the context of the pro-Palestine protests,' Mr Glass said. 'This is a new role the government wants universities to play.' The stepped-up scrutiny is eliciting outside warnings about Columbia's ability to continue enticing foreign applicants. 'International students and their parents were already hesitant about studying at US colleges, and we're not the only game in town anymore. The UK, Australia – there are many alternatives,' said Mr William Brustein, a veteran international-student officer who's worked at large research universities. 'This just adds more fuel to that fire.' Ms Fanta Aw, executive director of NAFSA, an association of international student officers and recruiters, said the arrest and disciplinary reporting requirement was something typically 'outside of the jurisdiction of universities.' The Columbia deal 'sets a precedent that all institutions should be aware of,' she said. Acting President Claire Shipman said in a letter to Columbia students and staff last week that a key reason she was eager to reach an agreement with President Donald Trump was 'the potential revocation of visa status of thousands of international students.' She also said Columbia didn't agree to report any information to which the federal government isn't already legally entitled. Arrest records are already accessible to Immigration and Customs Enforcement officials, and US agents used criminal records in their efforts to revoke student visas earlier this year. But Columbia hasn't typically been required to keep track of those records. Nor has it been obliged to report infractions to the government unless they result in a suspension or expulsion that affects students' enrollment requirements, and in turn, their visa status. The New York City-based school currently enrolls more international students than all but two other universities in the US, according to data from the Institute of International Education. Since many of them pay full tuition, they're a pillar of Columbia's revenue. Its graduate programs are particularly dependent on applicants from overseas. Other Ivy League schools are similarly reliant on international students to fill their graduate programs, especially in research fields focused on science, technology, engineering and math. While Ms Shipman said the agreement would have no direct bearing on Columbia's admissions process, the concessions echo steps taken by the Trump administration to heighten scrutiny of international applicants, including a new State Department policy for reviewing visa applicants' social media. In May, Secretary of State Marco Rubio said the administration would 'aggressively revoke' Chinese students' visas over national security concerns. In July, the Department of Justice opened an investigation into the University of Chicago's admissions policies for international students. Last week, the State Department launched a probe into Harvard's compliance with federal regulations around a program for foreign researchers and visitors, months after Mr Trump tried to ban foreign students and scholars from the school. It's not clear whether other schools in settlement talks with the administration will agree to the same measures on international students that Columbia did. Brown University reached a deal with the Trump administration on July 30 that didn't include such provisions. But policies on foreign students are almost certainly on the table in those talks. Mr Stephen Yale-Loehr, a former immigration law professor recently retired from Cornell University, said that for Columbia and other schools entertaining such concessions, 'the devil is in the implementation details.' But 'no matter how this is implemented,' he said, 'it shows international students that Columbia – and other universities that accept similar language – will be less welcoming.' BLOOMBERG
