STRONG PETRO (00852) announced that its indirect wholly-owned subsidiary, Strong Petroleum Singapore Pte Ltd (Strong SG), received a final arbitration award issued by the Singapore International Arbitration Centre on March 16, 2026. The case originated from a coal sales agreement entered into in the first half of 2024 between Strong SG, as the seller, and a third-party buyer. The buyer had paid a total advance payment of $3.8335 million. The dispute involved allegations by the buyer that Strong SG breached the sales agreement by failing to ship the full contracted quantity, not completing shipment by the final shipment date, failing to provide required shipping documents, and delivering coal that did not meet contract specifications. The buyer sought to terminate the agreement, demanded a refund of the purchase price, and filed an arbitration notice with the Singapore International Arbitration Centre. The tribunal ruled in favor of the buyer. The award is final and binding on both parties. According to the ruling, the tribunal ordered: 1. Strong SG to refund the buyer $3.8335 million for the goods; 2. Strong SG to pay the buyer $137,900 for lost profits; 3. Strong SG to pay interest on the above amounts of $3.8335 million and $137,900 at an annual rate of 5.33% from the date of the award until full payment is made; 4. Strong SG to pay the buyer's legal and disbursement costs totaling SGD 191,600; 5. Strong SG to reimburse the buyer for arbitration costs totaling SGD 85,700. On March 19, 2026, Strong SG received a statutory demand from the claimant via its lawyers, requiring Strong SG to pay approximately $3.9714 million and approximately SGD 277,300 (plus accrued interest) as ordered under the award within three weeks of service. Failure to comply would entitle the claimant to file a winding-up petition against Strong SG under Singapore's Insolvency, Restructuring and Dissolution Act 2018. As of the date of this announcement, Strong SG is actively negotiating with the claimant regarding the award and the statutory demand. The company will continue to seek legal advice on the matter and will issue further announcements as appropriate in accordance with listing rules to keep shareholders and potential investors informed of significant developments.
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