Seatrium says net order book at $21.3 billion as at March, shares rose 1%

SINGAPORE – Offshore and marine specialist Seatrium said its net order book stood at $21.3 billion as at March 31, in a business update that the company filed with the Singapore Exchange on May 29.

This order book comprises 26 projects with deliveries that extend to 2031, it added. Projects relating to renewables and green or cleaner solutions amounted to $7.1 billion of the total. 

Seatrium’s shares rose 1 per cent to $2.08 as at the midday trading break on May 29, after its business update. It closed the day at $2.07.

In the filing, the company said it maintained its focus on operational excellence and cost optimisation amid an uncertain operating environment, and continued to secure repeat order wins and breakthroughs in new markets.

On the oil and gas front, Seatrium noted that there has been steady progress on existing projects.

It delivered its fourth floating production storage and offloading (FPSO) project for waters off Guyana, and also has topsides fabrication and integration works under way for two other FPSO units bound for the South American country.

An FPSO unit is a type of floating facility used in the offshore oil and gas industry for the processing, transport and storage of oil and gas.

Seatrium added that commissioning works are also progressing well for the first of six new-build FPSO units for multinational corporation Petrobras, set to depart for Brazil later in 2025.

“The group continues to see a stable order pipeline for oil and gas projects, driven by an increased focus on energy security and strong energy demand,” Seatrium said.

It also signed an agreement with BP for a second floating production unit for the Gulf of Mexico, renamed the Gulf of America by US President Donald Trump.

Besides oil and gas, Seatrium is also continuing its series-build strategy in renewables, it said.

Seatrium chief executive Chris Ong noted in a briefing on May 29 that there is global uncertainty surrounding US policies, but the impact on the company is small at the moment.

Regarding supply chains, he said: “So far, we have not encountered any issues, because most of our products are not constructed out of the US. So generally... we think that we should be able to deliver without issues.”

He added: “When we take a look at energy transition, the diversification that we have set up will actually put us in a very good place in times like this... We just need to focus on delivering those projects. And I think we are fine so far, the customers are all still very eager to receive the assets.”

Mr Ong also provided an outlook on the different markets in terms of offshore renewable projects.

“I don’t think that there will be much (offshore wind) investment happening in the US market, but I think in the European market, because of the uncertainty, in fact, I think the energy ambition is quite clearly heightened,” he said.

There are also ongoing discussions about offshore wind projects in Taiwan and elsewhere in Asia, he added.

In the first quarter of the year, Seatrium hit several milestones in offshore wind projects, such as completing the strike steel for the second of three 2 gigawatt offshore converter platforms for TenneT – a European grid operator delivering energy to the Netherlands and large parts of Germany.

Offshore commissioning works are also under way for the Revolution Wind offshore substations off Rhode Island in the US, with a unit slated to be completed by June, Seatrium said.

“Despite current uncertainties in the US offshore wind market, the group continues to see opportunities in other regions, including Europe and Asia Pacific,” it added.

In January, Seatrium entered the Japanese offshore wind market when it was awarded a contract to carry out the engineering, procurement and construction work of a 5,000-tonne heavy lift vessel for Penta-Ocean Construction.

Seatrium also completed 45 repair and upgrade projects in the first quarter of the year.

These included a series of six cruise ship retrofits, works on naval vessels and LNG carriers, and the world’s first full-scale turnkey carbon capture and storage retrofit for an ethylene carrier by Norwegian shipping firm Solvang. 

In February, Seatrium reported that it returned to its first full-year profit since 2017. It posted a net profit of $157 million in 2024, bouncing back from a net loss of $2 billion the previous year.