Specifically, the company is in “commercial negotiations” with its old customer Petrobras for two rigs estimated by some analysts to be worth $4 billion each: P84 and P85. “This is the least disruptive path forward for our business in Brazil, which is a very critical market where we have big ambitions,” says Ong.
Seatrium’s massive writedown in its earnings report for FY2023 ended December has prompted analysts to cut their book value-based target prices. However, they share the management’s optimism that henceforth, the company is better-poised to capture the growing business of energy transition.
Part of the total $2 billion in impairment for surplus assets and provisions was a $182.4 million “leniency agreement” with Brazil to conclude a massive long-running corruption probe dubbed Operation Car Wash. Chris Ong, Seatrium’s CEO, explains that besides removing any criminal liability, the agreement means the company can continue to bid for new projects in Brazil.
