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THE customers who initiated arbitration proceedings against three of Yangzijiang Shipbuilding’s units over alleged contractual breaches have been awarded a right to a refund of US$3.32 million in deposits.

The award is in relation to two contracts with the shipbuilder’s units, with room for the London-based arbitration tribunal to make further awards.

The customers, who were not named, also made claims relating to about US$832.2 million, comprising loss of bargain and loss of profits. These were not upheld by the tribunal, the China-based shipbuilder said in a regulatory filing on Monday (Mar 3).

The proceedings, which were filed in 2022, relate to orders the customers placed for 10 vessels worth US$900 million.

In total, the tribunal issued 10 partial arbitration awards in relation to the 10 shipbuilding contracts. As the awards are partial, further claims can be made in future proceedings.

Yangzijiang Shipbuilding said the arbitration is not expected to have a material adverse effect on the group’s financial position for FY2025 ending December.

Last October, the mainboard-listed company revealed that these customers had terminated the contracts in 2022, shortly after placing orders for them in late 2021.

The customers commenced the arbitration proceedings, alleging a breach of the contracts by the three wholly owned subsidiaries of Yangzijiang.

They made claims for US$835 million in compensation, including loss of profits as well as refunds of payments made, which total US$3.3 million.

The shipbuilder said in its filing on Monday that it was unable to determine the claimants’ next course of action, although the tribunal’s decision is final.

“We are closely coordinating with our legal advisers on the remaining matters and potential response strategies,” said the company.

It added that it would continue to monitor the developments of the arbitration and provide further updates where necessary.

Shares of Yangzijiang Shipbuilding ended S$0.04 or 1.7 per cent higher at S$2.42.