Seatrium - CGS-CIMB Research 2023-11-08: Order Wins To Drive Turnaround In FY24F

Seatrium has changed its code to Seatrium (SGX:5E2) w.e.f. 2024-05-07 due to share consolidation.

Seatrium - Order Wins To Drive Turnaround In FY24F

Seatrium (SGX:S51) | SGinvestors.ioSeatrium (SGX:S51)
  • 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…

  • - Read this at -
  • 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.
  • - Read this at -
  • 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 @

LIM Siew Khee CGS-CIMB Research | 2023-11-08

Read also CGS-CIMB's most recent report:
2024-01-30 Seatrium - Toning Down Our Profit Expectations.

Previous report by CGS-CIMB:
2024-01-04 Seatrium - Project Cancelled, But Still An ADD.

Price targets by other brokers at Seatrium Target Prices.

Listing of research reports at Seatrium Analyst Reports.

Relevant links:
Seatrium Share Price History,
Seatrium Announcements,
Seatrium Dividends & Corporate Actions,
Seatrium News Articles


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