Broker Name: OCBC Investment Research
Date of Report: 13 November 2025
Excerpt from OCBC Investment Research report.
Report Summary
- Seatrium Limited is rated BUY with a fair value estimate of SGD2.76, despite recent setbacks including a major order cancellation and ongoing legal risks.
- The company maintains a strong net order book of SGD16.6b, aims for profitable growth, and targets EBITDA of at least SGD1b and ROE of at least 8% by FY28.
- Recent events such as the termination of a key US wind vessel contract and arbitration related to Operation Car Wash may weigh on the share price in the near term.
- Management remains confident about margin improvements, ongoing project delivery, and further asset divestments, with improving cost of debt.
- Seatrium leads industry peers in corporate governance and workplace safety, and continues to focus on sustainable solutions for the energy transition.
- Key risks include further order cancellations, legal provisions, and slower order book growth, but long-term growth targets are considered intact.
- Potential catalysts include rising oil and gas prices and higher-than-expected new order wins; risks are poor execution, impairments, and weak new order flow.
Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Investment Research can be the first to access the full report from the OCBC Investment Research website: https://www.ocbc.com/group/investments-research.html
