Corruption issues, payment suspension and worsening finances at a Brazilian shipbuilding joint venture
First written in FY2016. 3 of 4 entries say "Materialised", first in FY2016. Latest entry: FY2017-Q3.
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- FY2017-Q3MaterialisedAnnual report
「Operating income deteriorated by ¥11.2 billion year on year to an operating loss of ¥13.8 billion, owing mainly to an additional allowance for doubtful accounts on trade receivables from a local Brazilian joint venture and an increase in provisions for losses on construction contracts due to the stronger yen and higher costs.」
The additional allowance for doubtful accounts on trade receivables from the Brazilian joint venture was reflected in the operating loss of the Ship & Ocean business. - FY2017-Q2MaterialisedAnnual report
「Operating income and loss deteriorated by ¥13.3 billion from the same period of the previous year to an operating loss of ¥16.4 billion, mainly due to an additional allowance for doubtful accounts receivable from a local Brazilian joint venture and increased provisions for losses on construction contracts due to the stronger yen and higher costs.」
An additional allowance for doubtful accounts was recognised on trade receivables from the Brazilian joint venture and reflected in the operating loss of the Ship & Ocean business. - FY2017-Q1Termination of the technical assistance agreementAnnual report
「The agreement in question ended upon termination on 23 May 2016.」
The technical assistance agreement with ENSEADA INDUSTRIA NAVAL S.A. concerning the construction of a shipyard and drillships ended upon termination. - FY2016MaterialisedAnnual report
「Due to the impact of corruption issues in Brazil, payments relating to the construction of a drillship under construction were suspended for more than one year, resulting in a significant deterioration in the financial condition and cash flow of the business.」
An event relating to Enseada actually occurred. The company recognised ¥19,298 million in losses related to overseas businesses and ¥2,847 million in valuation losses on investments and loans, for a total of ¥22,145 million.