Seatrium’s nine-month net order book swells to S$24.4 billion
Year to date, the company has delivered three projects and completed 192 repair and upgrade projects
SEATRIUM ’S net order book for the nine months ended September rose to S$24.4 billion, with 30 projects under execution till 2031.
Of the total projects, five are scheduled for delivery this year and they are worth S$107 million in net contract value, said the offshore and marine specialist in a business update on Monday (Nov 11).
Year to date, the company has delivered three projects and completed 192 repair and upgrade projects.
It has also secured S$100 million worth of new contracts under its repairs and upgrades segment in the first nine months of the year.
These projects include a carbon capture and storage retrofit for transport company Mitsui OSK Lines, three offshore refits for an oilfield services company, as well as a major retrofit and refurbishment of a mega yacht from the Middle East.
Firm orders
Separately, Seatrium also announced that it has signed a letter of intent (LOI) with Japanese construction company Penta-Ocean Construction to carry out early engineering work for a heavy lift vessel project.
The contract is expected to be awarded in the first quarter of 2025, subject to final investment decision by Penta-Ocean. For the customer to sign an LOI before the contract shows Seatrium’s value in being locked in to do early works and negotiations leading up the contract, said Seatrium CEO Chris Ong.
“We will bear that in mind and will work very hard to convert all these LOI contracts,” said Ong.
Looking ahead, Seatrium is positive on the outlook for the offshore and marine industry despite uncertainties in the macroeconomic environment.
“Seatrium achieved a strong order win momentum in the first half, and continues to see a healthy pipeline of which it is working to convert into firm orders,” said the company.
For the rest of the year, the company said it is focused on further improving its financial performance by completing legacy projects and executing its order book.
Trump impact
Ong is sanguine about the impact of Donald Trump’s presidency on the business, highlighting that Seatrium operates in both oil and gas, and renewable energy sectors. With the uncertainties around a Trump presidency, the company will take a wait and see approach.
“We do not foresee that it will impact our business too much, because whichever vertical that will be evolving from his administration, Seatrium has a solution for its customers,” said Ong.
The company’s chief financial officer Adrian Teng had said previously that the completion of legacy projects will allow the company to move on from the past and focus on new orders that have been secured since its formation last year. These projects are on track for completion by the end of the year, said Ong.
Seatrium is a product of the combination of Sembcorp Marine and Keppel Offshore and Marine in February 2023.
In August, Seatrium swung back into the black with a first-half net profit of S$36 million, reversing from a net loss of S$264.4 million in the year-ago period. This comes amid new-build projects, as well as increased repair and upgrade activities, said the group.
Shares of Seatrium closed 2 per cent or S$0.04 higher at S$2 on Friday.
