Seatrium must manage its risks well as it tackles offshore headwinds
The company’s best defence is to broaden its non-oil and gas portfolio, in both geography and technology
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[SINGAPORE] The unexpected termination of a US$475 million contract highlights Seatrium’s exposure to the offshore wind sector and the turbulence that lies ahead.
On Oct 10, Seatrium announced that Maersk Offshore Wind is terminating the contract for a wind turbine installation vessel (WTIV) intended for the Empire Wind I project in New York. Seatrium says it is evaluating its legal and commercial options.
The news sent the company’s shares tumbling by as much as 7.8 per cent, or S$0.19, to S$2.25 within the first 40 minutes of trading following the announcement. The stock has continued to sink, closing Friday (Oct 17) at S$2.06.
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