Seatrium has seen its net orderbook cross SGD 20bn ($14.9bn) in the first quarter on the back of its pivot away from fossil fuel-based projects.
The company, formerly known as Sembcorp Marine, says renewables and cleaner/green solutions now comprise around 39% of the group’s net orderbook.
The first quarter of 2023 saw the company clinch its largest ever offshore renewable project to supply the high voltage direct current (HVDC) electrical transmission systems for three mega offshore wind farm projects, each valued at around €2bn ($2.2bn) from TenneT TSO B.V.
Seatrium also recently secured a contract worth more than SGD 500m for two offshore wind farm substations from Empire Wind LLC, a US joint venture between Equinor and bp.
“Amid the ongoing energy transition and heightened concerns for energy security, the industry outlook for oil & gas, offshore renewables and other green solutions continues to improve and strengthen,” said Seatrium chief executive officer Chris Ong during a virtual briefing on the company’s first quarter business update.
“The group is actively responding to new opportunities and is focused on converting its orders pipeline into firm contracts.”
Seatrium, with a market capitalisation of some SGD 8.5bn, was created by the merger between Sembcorp Marine and Keppel Corp’s offshore and marine arm, which was completed about a month ago.
Ong said the company has embarked on a “comprehensive strategic business review” following the completion of the combination to “unlock synergies and build a roadmap for sustainable growth”.
“A dedicated transformation team is in place to drive the strategic review and the exercise is expected to be completed before the end of 2023,” he said.
Analysts said they expect share consolidation, assessment of yard footprint, gearing up of the balance sheet to support more order wins or mergers and acquisitions to expand offshore renewable capabilities beyond wind turbine installation vessels and HVDCs to be among the areas under consideration by the review.
“Right now, we have started to take a look at the two companies – where are the synergies to harness…(and) to focus on executing the jobs…and make full use of all capacity we have…to get the best returns from the projects we have already secured,” Ong said.
