Seatrium Faces \$126.6 Million Payment after Singapore Court Ruling; Investors Urged to Exercise Caution

Key Points & In-Depth Analysis

• Singapore Court Dismisses Seatrium’s Appeal: Seatrium Limited announced that its appeal to restrain payment under a USD 126.6 million standby letter of credit (SBLC) has been dismissed by the Singapore Court. The beneficiary customer is now entitled to receive payment under the SBLC.
• Background to the Litigation: The litigation relates to a rig contract managed by a majority-owned joint venture (“Seatrium entity”). The dispute arose from adjustments made to the contract value for cost escalation, which were subsequently challenged by the customer.
• Ongoing Arbitration: While the court has ordered payment under the SBLC, Seatrium will continue to pursue its claims in arbitration with the aim of recovering the disputed payment from the customer.
• Full Provision Already Made: Seatrium has already made financial provisions for the full SBLC amount in its accounts. The company confirms that there is no expected adverse impact on its consolidated earnings per share or net tangible assets per share for the financial year ending 31 December 2025 due to this payment.
• Caution for Investors: Seatrium explicitly advises shareholders and potential investors to exercise caution in trading its securities, given the ongoing litigation and arbitration process. Investors are encouraged to seek professional financial advice if uncertain about their investment actions.
• Further Updates Promised: The company will provide additional updates should there be any material developments in the legal proceedings.

Details Investors Should Watch Closely

This announcement is potentially price sensitive due to the following factors:

• The direct financial impact involves a substantial payment of USD 126.6 million. Although provisions have already been made, the actual cash outflow and any protracted dispute resolution could affect investor sentiment.
• The fact that arbitration is ongoing means that the situation is unresolved and could change, depending on the outcome. Any recovery of the payment, or further liabilities emerging, could influence Seatrium’s future earnings and asset profile.
• The company’s explicit warning to shareholders and investors to exercise caution signals uncertainty and potential volatility in Seatrium’s share price.

About Seatrium Limited

Seatrium Limited is a global engineering solutions provider for the offshore, marine, and energy sectors, headquartered in Singapore. With over 60 years of industry experience, Seatrium’s business spans oil & gas newbuilds and conversions, offshore renewables, repairs & upgrades, and new energies. The company is strategically focused on sustainable solutions for the energy transition and maritime decarbonisation, operating facilities across Asia, Europe, the Middle East, and the Americas.

Contact Information

For further investor-related enquiries, contact:

• Amelia Lee, Head, Investor Relations and Corporate Communications – Tel: +65 6568 0300, Email: [email protected]
• Clarissa Ho, Senior Manager, Investor Relations and Corporate Communications – Tel: +65 6803 0276, Email: [email protected]

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors are urged to conduct their own due diligence and consult professional advisers before making any investment decisions. Market conditions may change, and legal outcomes may differ from expectations.

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