Sweden's Stena AB has launched London arbitration over a $426m claim for a cancelled semi-submersible drilling unit.

It tore up a 2013 order for the Stena MidMax in 2017 at Samsung Heavy Industries in South Korea.

The claim also has interest added on top, but Samsung has disputed the cancellation.

Stena had said the yard was unable to complete and deliver the unit within the contractually agreed time frame.

Norwegian company Odfjell Drilling later bought the unit and renamed it Deepsea Nordkapp.

Profit up in third quarter

Stena's net profit rose to SEK 279m ($29.19m) in the third quarter, from SEK 45m in 2018.

Revenue grew to SEK 9.77bn from SEK 8.47bn over the same period.

The ferry business produced operating profit of SEK 1.04bn, against SEK 1bn the year before.

EBITDA was at an all-time high, mainly due to increased car, passenger and freight volumes.

The shipping division increased EBITDA mainly due to stronger rates in all tanker segments, together with more operational days and higher rates for the LNG vessels.

Contract coverage and utilisation rates were strong across the ro-ro fleet, offset by lower charter income as a result of vessels sold in 2018.

Tanker EBITDA rising

Tanker operations generated EBITDA of SEK 680m in the nine-month period, compared to SEK 216m in 2018, as suezmax rates improved.

The implementation of the new lease standard IFRS 16 boosted the 2019 figure by SEK 392m compared to the same period last year.

The group also said the 252-pax ferry Kaiarahi (built 1998) has been sold.

The remaining capital expenditure commitment for newbuildings on order was SEK 6.61bn as of 30 September, of which SEK 832m is due during 2019, and another SEK 2.29bn in 2020.

Stena intends to finance this with cash from operations, existing revolving credit facilities, new capital lease agreements, new bank loans and other financing arrangements.