On Dec 24, Seatrium announced it won a contract from BP to build an offshore platform for use in the Gulf of Mexico. Loh figures that the contract, whose value was not disclosed by Seatrium, is worth between $500 to $600 million.
UOB Kay Hian's Adrian Loh has maintained his "buy" call and $2.80 target price on Seatrium, as he notes that the key Singapore-listed offshore and marine play has ended 2024 with a notable contract win plus other potentially positive developments. In addition, the likely completion of probes by MAS and CAD under the Securities and Futures Act will be a key re-rating catalyst in the near term.
"We continue to like Seatrum as we believe that the company will benefit from stronger offshore marine dynamics in 2025 as well as demand for offshore vessels and structures related to the renewables industry," says Loh in his Jan 3 note.
