September 3, 2018 / 8:05 AM / 3 months ago

SBM Offshore shares surge after company settles Brazilian suits

AMSTERDAM, Sept 3 (Reuters) - Shares in SBM Offshore surged on Monday on news the Dutch marine oil platform constructor had settled its remaining suit with Brazilian federal prosecutors, clearing the way for it to resume doing business in one of its most important markets.

In an explanation published on its website on Saturday, SBM said it would pay an additional $48 million to prosecutors and had received guarantees it would not face new charges from prosecutors.

“Once approved, the case will be closed and the agreement will become fully effective,” SBM said.

SBM shares surged 9.3 percent to 15.21 euros at the start of trading in Amsterdam before they were suspended.

In July, SBM agreed to pay approximately $189 million to Brazilian authorities and state oil company Petrobras in a related corruption case.

SBM was accused of paying bribes to government officials in the years before 2012 to secure contracts with Petrobras, which has been at the centre of Brazil’s largest corruption scandal amid investigations into a political kickback scheme involving contractors.

Two former SBM executives pleaded guilty in November to U.S. charges that they participated in a scheme to bribe officials at three foreign state-run oil companies, including Petrobras.

“We are pleased that following the recent agreement with Petrobras and Brazilian authorities we now also have reached an agreement that removes the uncertainties around the remaining litigation risk over our historical legacy issues in Brazil,” Chief Compliance Officer Erik Lagendijk said in a statement.

Including all fines in all cases, SBM will have paid $347 million to resolve its Brazilian issues. (Reporting by Toby Sterling; editing by Jason Neely)

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