Broker: OCBC Investment Research
Date of Report: 13 November 2025
Excerpt from OCBC Investment Research report.
Report Summary
- Seatrium Limited, a leading Singapore-based offshore, marine, and energy engineering group, reported a net order book of SGD16.6b as of 3Q2025, with deliveries extending until 2031. Despite a strong order backlog, recent events such as the cancellation of a major US wind vessel order and arbitration related to past legal issues are weighing on the share price and introducing earnings risks.
- The company maintains its FY28 targets (EBITDA ≥ SGD1b, ROE ≥ 8%, net debt/EBITDA 2-3x), but near-term growth is expected to be slower due to potential provisions and softer order momentum. The fair value estimate remains at SGD2.76 per share, with a BUY rating, as long-term prospects are considered intact, albeit with caution regarding possible further contract terminations and legal costs.
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