Reuters: Market News: UPDATE 1-SBM warns of possible 'improper' practices involving 3rd parties

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UPDATE 1-SBM warns of possible 'improper' practices involving 3rd parties Apr 10th 2012, 07:41 Tue Apr 10, 2012 3:41am EDT * Warns of possible improper sales practices * Appoints new governance and compliance officer * Shares drop more than 4 percent AMSTERDAM, April 10 (Reuters) - Dutch maritime oil and gas engineer SBM Offshore, which recently posted losses arising from disputes with clients, on Tuesday warned it had found evidence of possibly "improper" sales practices involving third parties. SBM Offshore said last year its management board launched a review of the company's compliance procedures, including anti-corruption guidelines, and their implementation. "As part of this review, the company has recently become aware of certain sales practices involving third parties which may have been improper," SBM Offshore said in a statement. "Outside counsel and forensic accountants, reporting to both the Management and Supervisory Boards, have been engaged to investigate these practices thoroughly." The news sent SBM's shares more than 4 percent lower early on Tuesday. SBM Offshore said it has taken the necessary steps to terminate any such practices and has disclosed its internal investigation to the appropriate authorities. A spokesman for the company declined to comment on the nature of the possible offences. It said it was taking remedial action to enhance its compliance programme, and announced the appointment Sietze Hepkema as chief governance and compliance officer on the management board, subject to shareholders' approval. Hepkema, who has been a partner with Allen & Overy, has specialised in international corporate law, with a particular focus on corporate governance and corporate finance, the company said. SBM took impairments last year resulting from disputes with Canadian group Encana, which is working on the Deep Panuke gas project off the coast of Nova Scotia, and Talisman Energy, which is developing the Yme oilfield off Norway. Those losses prompted a bigger-than-expected net loss for 2011, forced the firm to scrap its dividend and prompted a management shake-up, with the appointment of a new chief executive and a new chief financial officers. Link this Share this Digg this Email Reprints

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