Seatrium, a Singapore-based integrated shipyard, is currently embroiled in arbitration proceedings initiated by Keppel Offshore & Marine over a S$68.4m claim linked to Brazil’s Operation Car Wash. This follows the expiration of an indemnity agreement between the two companies in February 2025. Despite this legal challenge, Seatrium has secured over S$300m in new contracts this August, bolstering its position in the offshore oil & gas and renewables sectors.
The arbitration stems from a merger agreement in 2023, where Seatrium had initially set aside S$82.4m for indemnity provisions. However, these were reversed in 2024 due to the absence of binding agreements with Brazilian authorities before the indemnity’s expiration. The arbitration will be held in Singapore, though a date has not yet been set.
On a more positive note, Seatrium has been awarded significant contracts, including the integration of four powerships for Karpowership of Turkey, with an option for two more. This project, valued at approximately S$50m per vessel, is set to commence in the first quarter of 2027. Additionally, Seatrium has secured a contract from Golar LNG to upgrade the FLNG Hilli Episeyo vessel, estimated at S$100m, starting in the third quarter of 2026.
Seatrium’s robust S$18.6b orderbook, with a pipeline of S$30b, underscores its strategic focus on offshore, renewables, and energy transition projects. The company remains committed to converting these opportunities into secured orders, leveraging its expertise in series-build efficiencies and operational streamlining. Despite the arbitration, Seatrium’s outlook remains positive, with a target share price of S$2.96, reflecting a 29.3% upside.
“`
