Shares in marine engineering firm SBM Offshore plummeted this morning after the firm announced that it has set aside $238million to cover the costs of a US inquiry into potential “improper sales practices”.
The firm’s stock price dropped 10% after releasing a statement on the closing out of legacy issues.
The company became aware of the potential conduct issues back in 2012 and self-reported the matter to the Dutch public prosecutor and the US Department of Justice.
In 2014, SBM entered into a settlement agreement with the Dutch public prosecutor regarding its legacy issues in Equatorial Guinea, Angola and Brazil.
However leniency agreements with Brazilian authorities remain ongoing.
A renewed US investigation led to the conclusion that a financial penalty was due, which the company has now set aside cash for.
Chief governance and compliance officer Erik Lagendijk said: “The company self-reported the issues in 2012 and has completely changed its business model and ways of working since, as recognized by the company’s stakeholders.
“Although it appears that the Company can likely reach a resolution with the Department of Justice and thus make an important step towards closure of the past, it is unfortunate that despite all efforts made, no global solution to bring finality is currently available.
“We will continue to actively seek to bring the legacy issue in Brazil to an acceptable closure.”
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