The Evening Times yesterday reported that shipbuilder BAE Systems had won a £130million compensation battle with the Trinidad and Tobago Government after the Caribbean Republic had cancelled an order for three offshore patrol vessels.

We published the article after a spokeswoman for the defence contractor claimed it was to receive the cash payment.

However, BAE has in fact agreed to compensate the republic, which had cancelled the £150m order, after it claimed the delivery dates for all three ships were delayed and the combat system on two of them had failed during sea trials.

BAE Systems today declined to comment further on the result of the negotiations other than to confirm a "settlement" had been reached with the Trinidad and Tobago Government.

We are happy to clarify this here.