1st May 2015 08:52
LONDON (Alliance News) - Thalassa Holdings Ltd on Friday confirmed it will book a charge in its results related to its ongoing dispute with Russia's JSC Sevmorgeo, which has said it does not recognise the compensation due to Thalassa's WGP unit.
Thalassa's WGP Energy Services Ltd subsidiary has received written notification from Sevmorgeo that it claims it has not received any official documentation showing WGP has fulfilled its obligations and so no longer recognises the USD3.3 million due to WGP for services provided to Sevmorgeo in Ecuador in 2013.
Thalassa said Sevmorgeo had previously accepted all invoices issued by WGP and has corresponded on numerous occasions with WGP confirming the unpaid compensation.
As a result of the issues, Thalassa will book a USD3.3 million charge in its 2014 results and will recognise a further charge on the repatriation and remediation of its equipment to Europe of around USD0.8 million.
"Notwithstanding the position adopted by Sevmorgeo's new general director, we are hopeful that this matter can be resolved amicably. WGP has successfully operated for its Russian clients, including Sevmorgeo, for over 19 years and will continue to pursue further opportunities with Russian clients as soon as the geopolitical situation allows," said Thalassa Chairman Duncan Soukup.
Shares in Thalassa were down 2.1% to 47.50 pence on Friday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Thalassa (di)