Broker Name: CGS International
Date of Report: October 10, 2025
Excerpt from CGS International report.
Report Summary
- Seatrium Ltd (STM) faces a near-term negative impact after Maersk terminated a major WTIV construction contract for the Empire Wind 1 project in the US, despite the project being almost 99% completed.
- The contract cancellation is attributed to lower life cycle returns and instability in the US offshore wind market; STM is considering legal remedies and may seek other buyers for the vessel, with limited financial impact expected (estimated S\$30m profit impact and S\$20m provision for FY25).
- Core profit growth and margin recovery for FY25 are still anticipated, with downside risks including further order cancellations and project cost overruns; the report maintains an “Add” rating and a target price of S\$2.80.
- STM remains committed to ESG goals, securing over S\$400m in sustainable financing and outperforming peers in social and governance metrics, supporting long-term credibility in the energy transition sector.
- Financials project revenue growth in 2025 and 2026, with improving profitability metrics, strong balance sheet, and continued focus on sizeable order wins as key catalysts.
above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgsi.com
