Seatrium bags S$170 million worth of new contract wins ahead of Q3 results

[SINGAPORE] Seatrium on Tuesday (Oct 28) announced that it has clinched S$170 million worth of repair and upgrading contracts comprising major cruise, leisure and naval vessel projects.

All works for the projects are set to complete by the first quarter of 2026.

This comes as Seatrium faces a US$475 million contract termination for a nearly completed wind vessel project, for a contract it inked with a Maersk Offshore Wind affiliate in 2022. Seatrium is contesting the termination.

The recent contract wins comprise a mega yacht upgrade project from the Middle East, alongside major docking and repair works for various cruise ships. The ships include Discovery Princess and Crown Princess from Carnival Corporation, Silver Moon from Royal Caribbean Group and Le Soleal from Ponant Explorations Group.

The new contracts also include retrofit works for three navy vessels, decommissioning works on a floating production storage and offloading vessel, as well as offshore repair and maintenance works for a drillship and pipelayer vessels from McDermott.

The offshore marine and engineering company has also secured contracts for repair and upgrade works on three liquefied natural gas carriers. These include solutions to address greenhouse-gas emissions, works for three tankers, a wind turbine installation vessel, and two power station vessels from a repeat customer Karpowership – Karadeniz Powership Mehmet Bey and Karadeniz Powership Fatmagul Sultan.

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Commenting on the new contracts, Alvin Gan, Seatrium’s executive vice-president of repairs and upgrades, said that the company will continue to build on the momentum to pursue high-value repair and upgrade contracts that provide a “stable moat” for its financial performance.

A week ago, the company said it has rejected the notice of termination of the US$475 million contract inked with a Maersk Offshore Wind affiliate in 2022. In a bourse filing, the marine engineering company said that it rejected the notice of termination on Oct 12.

In that rejection, it said that the Maersk affiliate was “in repudiatory breach of the contract” and it “reserved all its rights against the buyer for wrongful termination”.

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The contract was for the construction of a wind turbine installation vessel at the US offshore wind farm, Empire Wind 1. Seatrium had said that it was going to “explore viable solutions”, including talks with the end-customer, Empire Offshore Wind, a joint venture between Equinor and BP.

Seatrium also sent a notice to the buyer on Monday that the vessel, which is 98.9 per cent complete, will be delivered on Jan 30, 2026.

In response, it received a notice of arbitration on Tuesday regarding the contractual dispute. The notice stated that such disputes are to be referred to arbitration in London, in accordance with the current London Maritime Arbitrators Association terms.

The arbitration notice did not contain any particulars of the alleged disputes, the buyer’s claims or the reliefs sought by the buyer, said Seatrium.

It added that it is taking legal advice and will “vigorously prosecute its position and defend any claims” from the buyer.

The counter ended Monday at S$2.20, up by 0.9 per cent or S$0.02.