One of the contracts awarded by Empire Offshore Wind LLC to Seatrium has been cancelled. On Jan 4, Seatrium announced that Empire Offshore Wind decided to cancel the contract for the 1,260MW Offshore Substation (OSS) Platform due to the “significant macroeconomic conditions” impacting the Empire Wind 2 project.
The contracts were secured in May 2023.
The contract that was cancelled was valued at over $250 million.
According to Seatrium, construction work on the Empire Wind 2 OSS Platform was expected to commence only in June with minimal engineering work performed. The group will now work on other projects instead.
The contract is structured on progressive payment milestones, and payment for the work performed to date has been received, resulting in neutral project cashflow.
The Empire Wind 1 project contract remains unaffected. Work on the 810MW Empire Wind 1 OSS Platform had begun in 4Q2023.
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The cancellation of this contract is not expected to have material financial impact on Seatrium’s earnings for the FY2024 ending Dec 31.
Shares in Seatrium closed at 11.5 cents on Jan 3.
