Seatrium bags S$170 million worth of new contract wins ahead of Q3 results

[SINGAPORE] Seatrium announced that it has clinched S$170 million worth of repair and upgrading contracts comprising major cruise, leisure and naval vessel projects, ahead of its third-quarter results due on Nov 13.

All works for the projects are set to be completed by the first quarter of 2026, the offshore and marine specialist said on Tuesday (Oct 28).

This comes as the company faces the potential termination of a US$475 million contract it inked in 2022 with a Maersk Offshore Wind affiliate for a nearly completed wind vessel. Seatrium is contesting the termination.

The recent contract wins comprise a mega yacht upgrade project from the Middle East, alongside major docking and repair works for various cruise ships.

The ships include Discovery Princess and Crown Princess from Carnival Corporation, Silver Moon from Royal Caribbean Group and Le Soleal from Ponant Explorations Group.

The new contracts also include retrofit works for three navy vessels, decommissioning works on a floating production storage and offloading vessel, as well as offshore repair and maintenance works for a drillship and pipelayer vessels from McDermott.

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Seatrium has also secured contracts for repair and upgrade works on three liquefied natural gas carriers. These include solutions to address greenhouse-gas emissions, works for three tankers, a wind turbine installation vessel, and two power station vessels from a repeat customer Karpowership: Karadeniz Powership Mehmet Bey and Karadeniz Powership Fatmagul Sultan.

Commenting on the new contracts, Alvin Gan, Seatrium’s executive vice-president of repairs and upgrades, said that the company will continue to build on the momentum to pursue high-value repair and upgrade contracts that provide a “stable moat” for its financial performance.

Potential contract termination

A week ago, Seatrium said it had rejected a notice of termination for a US$475 million contract it signed with a Maersk Offshore Wind affiliate in 2022.

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Seatrium hit by US$475 million contract termination for nearly completed wind vessel; shares drop 6.6%

According to a bourse filing, the company rejected the notice on Oct 12. In the rejection, the group said that the Maersk affiliate was “in repudiatory breach of the contract” and that it “reserved all its rights against the buyer for wrongful termination”.

The contract was for the construction of a wind turbine installation vessel at a US offshore wind farm, Empire Wind 1, which is about 98.9 per cent complete.

Seatrium said it would “explore viable solutions”, including talks with the end-customer, Empire Offshore Wind, a joint venture between Equinor and BP.

The company also sent a notice to the buyer on Oct 20, stating that the nearly completed vessel will be delivered on Jan 30, 2026, and received a notice of arbitration on Oct 21 regarding the contractual dispute.

The notice stated that such disputes are to be referred to arbitration in London, according to the terms of the current London Maritime Arbitrators Association.

Seatrium said that it is seeking legal counsel and will “vigorously prosecute its position and defend any claims” from the buyer.

The counter ended Monday at S$2.20, up by 0.9 per cent or S$0.02.