- 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 SGinvestors.io -
- 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 SGinvestors.io -
- 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
- Read more at SGinvestors.io.
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/.
LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2023-11-08
Previous report by CGS-CIMB:
2023-10-13 Seatrium - Empire Offshore Wind Project Timeline Remains On Track.
Price targets by 2 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
