Broker: CGS International
Date of Report: October 10, 2025
Excerpt from CGS International report.
Report Summary
- Seatrium Ltd (STM) faced a knee-jerk negative share price reaction after Maersk terminated a nearly completed US\$475m contract for a wind turbine installation vessel (WTIV) intended for the Empire Wind 1 offshore wind project in the US.
- The termination reflects instability and lower returns in the US offshore wind market, with STM considering legal actions and provisions for potential losses, while its financial guidance for FY25 was conservatively adjusted downward by 6%.
- Despite this setback, STM maintains a positive outlook with expectations of core profit growth and margin recovery, supported by strong ESG practices, ongoing projects, and a maintained target price of S\$2.80 per share.
- Empire Wind 1 remains on track for development, and STM’s other contracts, including the Empire Wind 1 substation, are unaffected.
- The company continues to focus on sustainability, operational excellence, and robust order wins to drive future growth.
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.cgs-cimb.com
