6 days ago
Seatrium posts S$21.3 billion Q1 net orders
[SINGAPORE] Seatrium recorded net order book wins amounting to S$21.3 billion as at end-March, comprising 26 projects with delivery dates till 2031.
Of these, nine are scheduled for delivery in 2025, and they have a contract value of S$387 million, the offshore and marine specialist said on Thursday (May 29) in its Q1 business update.
Projects relating to renewables and green or cleaner solutions had a contract value of S$7.1 billion, it said.
During the quarter, the company completed 45 vessel repairs and upgrades. These included two carbon capture and storage retrofits and projects for six cruise ships, two liquefied natural gas carriers and three offshore vessels.
It also delivered a floating production storage and offloading (FPSO) project to SBM Offshore, after providing topsides fabrication, installation and integration works as well as pre-commissioning and commissioning support.
Stable O&G order outlook
Seatrium's order pipeline for oil and gas projects was stable for the quarter, driven by an increased focus on energy security and strong energy demand.
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Works for several of FPSO projects are in progress, with topside fabrication and integration works underway for two FPSOs bound for Guyana.
Commissioning works are in progress for the first of six newbuild FPSOs for Brazilian state-run oil company Petrobras, which is set to depart for Brazil in 2025. The group has also commenced integration work for another Petrobras order.
It signed a memorandum of understanding with BP Exploration & Production – a subsidiary of BP – for a deepwater floating production unit (FPU) in the Gulf of Mexico, extending its collaboration with BP on an earlier FPU project. Seatrium also secured a contract to supply equipment and a licence to build a jack-up rig in the Middle East and North Africa region.
Opportunities in Apac, Europe offshore wind
Seatrium has a 'healthy pipeline' of renewable energy projects, said the company's chief executive Chris Ong in a call with analysts on Thursday morning. This comes even amid macro uncertainties and US President Donald Trump's backlash against clean energy.
The company has commissioning works underway for substations of the US offshore wind farm Revolution Wind, with a unit slated to be completed by June 2025.
Asked about his outlook for offshore renewable energy, Ong said: 'I don't think that there will be much investment happening in the US market.'
But he is optimistic about the outlook for offshore renewables in Europe, where the 'energy ambition is quite heightened' amid concerns about energy security. Ong cited how several tenders are still expected to run in Germany.
Asia-Pacific also presents opportunities. In January, Seatrium won a contract for engineering, procurement and construction works on a 5,000 tonne heavy lift vessel for Penta-Ocean Construction, marking its maiden entry into the Japanese offshore wind market.
On the repairs and upgrades front, the group recently secured a floating storage regasification unit conversion contract from Norwegian floating energy infrastructure provider Hoegh Evi. Engineering works for the project will begin soon, and will last for about 18 months.
Overall, Ong is optimistic about the company's trajectory, with its 'ongoing journey' in cost optimisation. He expects gross margins to improve 'in the right direction'.
Asked whether macro uncertainty has made customers push back on pricing, he said: 'We are always under price pressure, but so far, I think that the customers understand the value Seatrium brings to the table.'
The counter ended Wednesday 0.5 per cent or S$0.01 higher at S$2.06.
