In its business update for 1HFY2026 ended March 31, Mainboard-listed Seatrium reported “steady” project execution with a net order book of $15.5 billion across 24 projects with deliveries through 2033. For reference, Seatrium’s order book was $17.8 billion as at Dec 31, 2025, implying that more than $2 billion in revenue was recognised during the quarter.
During the period, the offshore and marine player delivered two legacy projects — the Frederick Paup, the largest Jones Act compliant trailing suction hopper dredger to Manson Construction; and Maersk Viridis, a next generation wind turbine installation vessel to Maersk Offshore Wind. Other projects were reported to be proceeding in line with expectations.
“More than 95% of our net order book today are series build projects [and] this gives us confidence with this improving mix of projects that will progressively contribute to further margin improvements, as well as lower execution risk,” says Seatrium CEO Chris Ong at a briefing. “Our diversified business and track record across traditional transition and clean energy affords us the ability to pursue a wide breadth of opportunities.”
On potential contracts, Seatrium shares that pipeline opportunities across oil and gas, offshore wind and vessel conversions segments, remain robust at more than $28 billion — q-o-q down from $32 billion — over the next 24 months. The decrease was attributed to Petrobras awarding the SEAP 1 project to SBM Offshore.
Ong explains that key opportunities last disclosed remain mostly intact, comprising South America for oil and gas projects that includes Brazil and Guyana, HVDC (high voltage direct current) opportunities in Europe and HVAC (high voltage alternating current) opportunities in Asia, emerging FLNG (floating liquified natural gas) opportunities in Africa, and fixed platforms in the Middle East. He adds that Seatrium could potentially provide some solutions to SBM for SEAP.
“Our diversified business and track record across traditional transition and clean energy affords us the ability to pursue a wide breadth of opportunities,” adds Ong. “While FID [final investment decision] timing is not within our control, we believe that we are well positioned to capture these pipeline opportunities, leveraging our strong competitive position, track record, and global scale.”
On new contract wins during the quarter, the company secured its eighth floating, storage and regasification unit (FSRU) conversion project, LNGT Karadeniz, from Karpowership. This marks the first of three FSRU conversion projects from an earlier letter of intent (LOI), which also comprised the integration of up to six new-generation Powerships.
“Beyond Karpower LOI, we see growing demand for FSRU and FLNG conversion projects driven by a confluence of factors, including energy security, capital efficiency, transition dynamics, and speed of deployment,” adds Ong.
The company points out that gross margin continues to improve due to several reasons including: improved project mix; lower overheads partly contributed by the completed divestments; and lower general and administrative expenses resulting from “rigorous risk management, productivity gains and cost control initiatives”. Margins also reflected “stringent contract selectivity” with a preference for series build projects with progressive milestone payments, pricing discipline and project governance.
CFO Stephen Lu shares that the company has completed all non-core asset divestments including the AmFELS Yard, Crescent Yard, Karimun Yard, as well as other assets such as the completion of the tugboat fleet divestment in April 2026.
“These are non-core assets and do not impact our capability nor ability to take on new projects [and] together with prior transactions, we are on track to unlock more than $50 million in annualised operational cost savings, and more than $330 million in cash proceeds post-completion,” says Lu. “We remain on track to achieve our FY2028 steady state targets.”
On the balance sheet, Lu says that the company is bringing down its average cost of debt while also lengthening debt maturity with the issuance of $400 million 2.95% fixed rate notes due in 2031 under its $3 billion multi-currency debt issuance programme. “I think importantly, we're also looking to de-leverage over time as we're able to do so [and] that's the most effective way to guard against the rising interest costs,” says Lu.
Seatrium will provide financial details in its 1HFY2026 update, presumably in around three months.
At around 10.40am on May 29, shares in Seatrium are down five cents, or 2.3%, at $2.12.
