Pengion Int’l

Pengion Int’l: received notice of termination from Abu Dhabi National Oil Company (ADNOC) for two Safety Standby Rescue Vessels (SSRV) shipbuilding contracts signed in Aug ’07, and originally scheduled for delivery in 1H10. Contractually, ADNOC may claim refund of progress payment, plus interest. Penguin to potentially take P&L hit in 2Q10, resulting in NAV/sh dropping from 19.2c to 18c, and EPS dropping from 1.13c to -0.06c, based on FY09 numbers. Group is currently seeking legal advice.