- Seatrium’s significant exposure to Brazil comes from its construction of eight out of the 11 FPSOs that Petrobras will be putting to work from 2H24 to 2028. We believe there are seven (and possibly up to 11) other FPSOs that could be contracted in the next 12-24 months if Petrobras’ production targets for 2029-31 need to be met.
- - Read this at SGinvestors.io -
An ocean of opportunities in Brazil.
- Drilling down into Seatrium (SGX:5E2)’s longer-term potential for growth, we view its two-decade-long, on-the-ground exposure in Brazil as a key competitive advantage. This is especially the case given the company’s merger with Keppel Offshore Marine in 2023 which expanded its presence in the country. We highlight that this opportunity set encompasses both oil & gas as well as renewables.
Potential exposure to new projects offshore Brazil.
- - Read this at SGinvestors.io -
- Apart from these, we highlight that Petrobras failed to receive any positive response from its four FPSO tenders in 2024; thus industry reports suggest that the company is reassessing its strategy with these tenders. Clearly, this will benefit Seatrium should it choose to issue construction contracts instead.
How much could these contracts be worth?
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Adrian LOH UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-09-09
Previous report by UOB:
2024-08-05 Seatrium - 1H24 The Beginning Of The Turnaround Story.
Price targets by 3 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
