KUALA LUMPUR: SIME DARBY BHD [] does not expect any substantial loss from the suit filed by Emirates International Energy Services over a dispute in Abu Dhabi, where the latter is seeking US$178.2 million in compensation.
In a reply to a query from Bursa Malaysia Securities, Sime said on Monday, March 21 it did not expect any financial impact as the group had been advised that the claims set out in the suit against Sime Darby Engineering Sdn Bhd had no merits.
'No substantial losses are expected. This is because based on the preliminary knowledge of the facts, Sime Darby Engineering's external solicitors have advised that the claims set out in the suit have no merits,' it said.
Sime Darby also said on Monday no financial impact was anticipated as the group had been advised that the claims set out in the suit have no merits.
'As far as operational impact is concerned, Sime Darby Engineering's business is as usual since it has no on-going or targeted projects in the UAE. Sime Darby Engineering's operations elsewhere are also unaffected since the agency agreement with Emirates International is specific for the UAE only,' it said.
To recap, Emirates International and Sime Darby Engineeing had signed an exclusive agency agreement in September 2006 in the United Arab Emirates.
Under the agency agreement, Emirates International was contracted to, amongst others, identify suitable projects for potential participation of Sime Darby Engineering. Emirates International was taking action against Sime Darby Engineering for compensation for not participating in the projects that the former had identified for the latter.
In a reply to a query from Bursa Malaysia Securities, Sime said on Monday, March 21 it did not expect any financial impact as the group had been advised that the claims set out in the suit against Sime Darby Engineering Sdn Bhd had no merits.
'No substantial losses are expected. This is because based on the preliminary knowledge of the facts, Sime Darby Engineering's external solicitors have advised that the claims set out in the suit have no merits,' it said.
Sime Darby also said on Monday no financial impact was anticipated as the group had been advised that the claims set out in the suit have no merits.
'As far as operational impact is concerned, Sime Darby Engineering's business is as usual since it has no on-going or targeted projects in the UAE. Sime Darby Engineering's operations elsewhere are also unaffected since the agency agreement with Emirates International is specific for the UAE only,' it said.
To recap, Emirates International and Sime Darby Engineeing had signed an exclusive agency agreement in September 2006 in the United Arab Emirates.
Under the agency agreement, Emirates International was contracted to, amongst others, identify suitable projects for potential participation of Sime Darby Engineering. Emirates International was taking action against Sime Darby Engineering for compensation for not participating in the projects that the former had identified for the latter.
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