Seatrium (SGX:S51)’s orderbook fell to S$17.7bn at end-3Q23 from S$19.7bn at end-1H23. Orderbook (OB) comprises of 33 projects with delivery schedules up to 2030.
73 vessels underwent repairs and upgrades (RU) in 3Q23. Apart from work on energy transition-driven project upgrades, Seatrium highlighted active RU enquiries for jackups, with even some preliminary enquiries for newbuild jackups.
No new order wins during 3Q23…
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Seatrium's net gearing ratio improved to 0.15x at end-3Q23 vs 0.17x as of end-1H23. Management plans to use the S$968m receivables prepaid by Borr Drilling for technology investments.
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We continue to expect FY23F order wins of ~S$7.1bn.
…but key projects are in the pipeline.
As noted on 28 Aug 2023, Seatrium was awarded a letter of intent (LOI) by Shell for construction work on its Sparta floating production unit (FPU), which we expect to be worth ~S$300m-400m. Seatrium is awaiting a final investment decision (FID) from project partners Shell and Equinor.
Management also noted that the bid for Petrobras’s P-84/85 FPSOs is still undergoing technical clarification, with the next step being price negotiation (Seatrium is likely to win 1 order here, according to Upstream).
It is also actively engaging with TenneT for its next round of German projects for 2024.
Offshore wind exposure
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Above is the excerpt from research report by CGS-CIMB. Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
