Seatrium secures $11.4 billion in orders to date this year

SINGAPORE – Seatrium said on May 28 that it has secured $11.4 billion in orders so far this year, driven by contracts from Petrobras and Shell, among other clients.

These include recently announced floating production storage and offloading vessel (FPSO) orders from Brazil’s national oil company Petrobras and a Sparta floating production unit for Shell, the group said in its first quarter business update.

The group also won contracts from Modec and SBM Offshore.

Seatrium’s current net order book stands at $25.8 billion, comprising 31 projects with deliveries until 2030, excluding repair and upgrade projects.

For its repair and upgrade segment, the offshore and marine group bagged $350 million in major contracts. It also obtained contracts from Solvang ASA for a carbon capture and storage retrofit, and TMS Cardiff Gas for repairs and upgrades of 17 liquefied natural gas (LNG) carriers.

It also renewed a deal with GasLog LNG Services and Shell International Trading and Shipping Company to repair, refurbish and upgrade 43 LNG carriers.

During the quarter, the group completed 67 repair and upgrade projects and delivered the first membrane LNG bunker vessel in Singapore.

It also obtained a $400 million committed green revolving loan facility to support business growth in the offshore renewables space, and completed an early redemption of $500 million in floating rate bonds due 2026.

The group also established a $100 million share buyback programme funded by existing cash. Other notable events include its 20-to-1 share consolidation exercise and divestment of Batangas Yard in the Philippines.

The group also announced a final settlement of US$68 million (S$92 million) to resolve the interest payable and all outstanding issues arising from its arbitration commenced by MHWirth in December 2021 against a wholly-owned subsidiary. This amount will be booked in FY2024.

Shares of Seatrium were up two cents at $1.74 as of 9.23am on May 28. They jumped 11.7 per cent the previous day after news that the company had won $11 billion in contracts from Petrobras.

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