Seatrium Sees 28 Billion in New Projects

Seatrium, an offshore and marine player, is eyeing more than S$28 billion in project opportunities over the next two years, as the Middle East conflict escalates the global race to secure energy supply.

Higher oil prices are providing a supportive environment for offshore energy infrastructure investments, said Seatrium CEO Chris Ong on Friday.

The company’s order book stands at S$15.5 billion as at end-March, with delivery dates until 2033.

Seatrium is seeing growing demand for floating storage regasification unit (FSRU) conversion projects, with the company expecting more interest in the short to medium term.

These specialised vessels offer a quick and flexible means to convert liquefied natural gas (LNG) back into its gaseous form, for use in power generation, according to the company.

Seatrium has established its global leadership in complex conversion projects, which will position the company well to capture these high-value projects, said Ong.

Project Opportunities

They are also looking into oil and gas projects in South American markets – such as Brazil and Guyana – and have identified emerging opportunities for floating LNG projects in Africa and fixed platforms in the Middle East.

The company is pursuing substation projects for offshore wind power in Europe and Asia on the clean energy front, where it can leverage its expertise to support the transition to clean power.

The themes of energy security and the transition to clean power are increasingly prominent, with the distinction between them blurred, noted Ong.

Net Order Book

More than 95 per cent of Seatrium’s net order book comprises series-build projects, which will help to improve margins progressively and lower execution risk.

It secured several projects in Q1, including its eighth FSRU conversion: the LNG tanker Karadeniz for energy giant Karpowership.

Seatrium delivered two legacy projects in Q1: the trailing suction hopper dredger Frederick Paup to Manson Construction, and the wind turbine installation vessel Maersk Viridis to Maersk Offshore Wind.

Financial Performance

Seatrium’s balance sheet remained strong, and the company has made progress in proactively managing its borrowings, which is crucial for its future growth in the energy market.

However, any increase in project sanctions or order wins is expected to materialise progressively due to capital discipline among customers.

Shares of Seatrium closed S$0.05 or 2.3 per cent lower at S$2.12 on Friday.

Seatrium will continue to pursue new project opportunities and expand its presence in the global energy market.