In its 3QFY2023 ended September business update on Nov 8, Ong maintains that much of the negative news was related to the development of wind energy along the US East Coast that started about two years ago. Due to inflation and rising funding costs, some of these projects are no longer viable. although offtake rates have stayed the same.
The wind energy market, which has been on the radar of investors, was hit in recent weeks due to a stream of bad news. These range from industry players abandoning projects and plunging earnings to over-bullish assumptions about public subsidies for funding energy transition projects.
For years, the former Sembcorp Marine (SGX:S51
) was a key player in building oil rigs. Under new CEO Chris Ong, Seatrium, which includes former rival Keppel’s offshore unit, ventured beyond fossil fuel to energy transition projects, which now account for 40% of its $17.7 billion order book.
