SEMBCORP Marine Ltd., the world’s second-largest oil rig builder, will pay Societe Generale $115.45 million to close trades that contributed to $303 million of foreign-exchange losses.

Jurong Shipyard Pte, a wholly owned unit, will make the payment, plus interest, November 19, SembCorp Marine said in a statement to the Singapore stock exchange.

The yard sold 300 million of preference shares at S$1 apiece to its parent to replenish capital, according to the statement.

Jurong Shipyard is in talks with other banks involved in foreign exchange deals it claims were not properly authorized and should not be binding.

The payment was demanded by Paris- based Societe Generale as a condition for closing the trades, and SembCorp Marine said it expects repayment if it wins a dispute with the 11 lenders involved trades of US dollar and euros.

“Societe Generale accepts that such payment is without prejudice to Jurong Shipyard’s position that the transactions are unauthorized and is subject to Jurong Shipyard’s right to a refund of the monies from Societe Generale in the event that the dispute on the validity of the transactions is ultimately resolved in Jurong Shipyard’s favor,” SembCorp Marine said.

Spokesman Judy Han couldn’t be reached at her office while Societe Generale declined to comment on the issue.

SembCorp Marine shares were unchanged at S$4.32 at the midday break in Singapore.

The stock has climbed 78 percent this year, making it the sixth-best performer on the 47-member Straits Times Index.

No provision for the foreign-exchange losses will be included in earnings results until a probe is completed, SembCorp Marine has said. (Bloomberg)

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SEMBCORP Marine Ltd., the world’s second-largest oil rig builder, will pay Societe Generale $115.45 million to close trades that contributed to $303 million of foreign-exchange losses.