Market Insights
Seatrium sees gains after resolving Maersk dispute; ‘Santa rally’ beckons on Wall Street
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Seatrium saw gains in its share price after resolving a dispute with Maersk.
PHOTO: MAERSK SUPPLY SERVICE
SINGAPORE – Seatrium was one of the Singapore market’s gainers last week after resolving its dispute with Danish shipping giant Maersk.
The offshore, marine and energy specialist saw its shares rise 3.4 per cent through the week to close on Boxing Day at $2.14.
Seatrium announced on Dec 22 that it had reached a resolution to deliver a wind turbine installation vessel to a Maersk affiliate in an agreement that ended a contract dispute with the buyer.
At stake is US$360 million (S$462 million), representing the remaining balance of the contract price that Seatrium said it would receive upon delivery of the vessel, which is 99.8 per cent completed.
Under the agreement, the Maersk affiliate was to pay part of the contract price – US$250 million – through an interest-bearing, 10-year loan extended by Seatrium.
Seatrium will hold a mortgage over the vessel, along with first-priority security interests over the vessel and the Maersk affiliate’s bank accounts.
The vessel was slated to be deployed in installing massive turbines at Equinor’s Empire Wind project off the coast of New York.
However, Empire Wind is one of five large wind farm projects affected by an order by the Trump administration on Dec 22.
Overnight in the US, the administration suspended leases for five large offshore wind projects that are under construction, over what it called national security concerns.
The US Department of the Interior said the decision followed concerns raised by the Pentagon that the transport of large turbine blades for offshore wind projects and the highly reflective towers that support them could interfere with radar systems, and make it harder to detect and track security threats, the media reported.
Seatrium said in response to queries on Dec 23 that it is closely monitoring the situation in the US and that there are no changes to its resolution to deliver the vessel to Maersk.
Maersk had tried to cancel the Seatrium contract in October.
This came after the Trump administration issued a stop-work order on the Empire Wind project earlier in 2025. The order was later lifted following a compromise with New York state that could pave the way for a natural gas pipeline backed by US President Donald Trump.
Analysts maintained their “buy” call on Seatrium following the resolution.
Citi Research said the outcome would be an overall positive for the company, as it removes the perception risk arising from Maersk’s initial termination notice.
CGS International analysts also welcomed Seatrium’s resolution with Maersk and maintained their target price of $2.67 for the stock, although this was before the announcement of the US freezing offshore wind projects.
Other market movers
Catalist-listed gold-mining company CNMC Goldmine rose on the back of record-high gold prices.
Gold and silver surged to record highs on Dec 26, extending a historic rally in precious metals fuelled by a weaker US dollar and heightened geopolitical uncertainty. Spot gold climbed to a peak above US$4,530 an ounce, bringing its gains for 2025 to nearly 70 per cent.
This was despite news before Christmas that a Malaysian unit of CNMC was hit with additional income tax and a penalty by the Inland Revenue Board of Malaysia, amounting to RM29.6 million (S$9.39 million), for the assessment years 2019 to 2024.
CNMC has said that it intends to file an appeal.
The gold miner has seen its share price rise by around 336 per cent since the start of 2025.
It rose 1.9 per cent through the week to close at $1.09 on Dec 26.
Nam Cheong, a Malaysian company that builds offshore support vessels, also rose.
The Singapore-listed company announced on Dec 24 that it will sell a 4,000 deadweight tonnage platform supply vessel to a Vietnam-based offshore and marine group for US$20.5 million.
The sale is expected to bolster the group’s earnings for the 2025 financial year.
Net proceeds from the sale of the vessel will also be used to support the company’s shipbuilding activities, such as helping to expand its fleet so it can grow its recurring income base, depending on opportunities the company finds.
Nam Cheong’s shares closed 1.7 per cent down at 86 cents on Dec 26, after rising earlier in the week.
On the property side, Keppel Real Estate Investment Trust (Keppel REIT) said it is launching an $886.3 million preferential offering for some 923 million new units on Dec 26.
The offering will close on Jan 9, and the new units will start trading on Jan 19.
The $886.3 million raised will be used mostly to finance Keppel REIT’s acquisition of an additional stake in Marina Bay Financial Centre Tower 3, while the rest will go to the professional fees and expenses the REIT expects to incur in relation to its acquisition.
Keppel REIT had said earlier on Dec 11 that it will be acquiring an additional one-third stake in Marina Bay Financial Centre Tower 3 from a subsidiary of Hongkong Land for around $1.5 billion.
This sale will be completed on Dec 31.
Keppel REIT said the acquisition allows it to strengthen its position in the Central Business District, which is in line with its goal of delivering stable income and driving sustainable long-term total returns.
This is done through investing in and owning premium commercial assets in the Asia-Pacific’s key business districts, anchored by a prime Singapore portfolio, it said in its filing.
“Such landmark high-quality properties within the Marina Bay precinct are rarely available in the market, underscoring the unique opportunity presented by the acquisition,” it added.
Beyond the Republic
US stock markets saw the beginnings of what analysts term a “Santa rally” over the festive season.
The Dow Jones Industrial Average and the S&P 500 finished at record levels on Dec 24 before the Christmas break.
According to preliminary data, the S&P 500 rose 0.32 per cent to end at 6,932.12, on the back of an advance led by tech firms.
The Nasdaq Composite gained 0.22 per cent to 23,613.31, and the Dow climbed 0.6 per cent, adding nearly 290 points to close at 48,731.81.
The “Santa rally” refers to a seasonal pattern where markets enjoy gains during the final five trading days of the year and the first two sessions of January.
Positive market sentiment might also have been bolstered by statistics showing that the US economy expanded in the third quarter at the fastest pace in two years, supported by resilient consumer and business spending and calmer trade policies.
The US economy grew at an annualised pace of 4.3 per cent in the third quarter, based on inflation-adjusted gross domestic product, which measures the value of goods and services produced.
What to look out for this week
Singapore’s purchasing managers’ index comes out on Jan 2. It is a key economic indicator based on monthly surveys of purchasing managers in manufacturing, services or construction.
The data will show whether the manufacturing and service sectors are expanding or contracting.
Over in the US, Dec 30 will also see the release of the minutes from the Federal Bank’s meeting in December. At that meeting, the central bank cut rates for the third time, but Fed members were split on the decision.
