KUALA LUMPUR (Nov 13): Destini Bhd (KL:DESTINI) expects to book an additional RM4.14 million provision after an arbitral tribunal ruled against the company in an invoice dispute.

Destini and its unit, Destini Shipbuilding and Engineering Sdn Bhd, were ordered to pay Dutch shipbuilder Damen Shipyards Gorinchem BV a total of €3.81 million (RM17.2 million) under the arbitration proceedings’ final award, according to a bourse filing on Friday.

The company and its unit’s €3.81 million counterclaim, meanwhile, was dismissed together with all its other claims and counterclaim, the filing noted.

Destini said it had made a RM13.87 million provision in relation to the arbitration as at end-June and expects to recognise another RM4.14 million provision for the second quarter ending Dec 31, 2026 following the final award.

“The company estimates that this will reduce the group’s net assets per share by approximately 0.75 sen,” said the engineering and defence services provider.

Destini, however, is consulting its legal advisers on the final award and on the options and remedies available to the company, including the company’s position on payment of the award sum, the filing noted,

The dispute arose from a material packages contract Damen entered into with Destini Shipbuilding in June 2017 and a subsequent corporate guarantee given by Destini.

Damen initiated the arbitration in 2024 claiming a sum of €3.03 million, including the outstanding sum under the invoice, interest, as well as storage and insurance costs of goods under the contract. The insurance cost claim was disallowed in the final award.

Shares of Destini ended half a sen or 2.5% higher at 20.5 sen on Friday, valuing the company at RM109.86 million.