Broker Name: CGS International
Date of Report: December 22, 2025
Excerpt from CGS International report.
- Seatrium Ltd (STM) resolved its dispute with Maersk, ensuring delivery of the wind turbine installation vessel (WTIV) Sturgeon by February 2026, with US\$110m due on delivery and US\$250m to be paid over 10 years through a credit agreement.
- STM is expected to earn about S\$12m per year in interest income from the credit arrangement over FY26F-27F, and no major provisions are expected as construction is nearly complete.
- Recent order wins, estimated at S\$4bn year-to-date, support a positive earnings outlook, with margin recovery seen as a key re-rating catalyst; target price is reaffirmed at S\$2.67 with an “Add” rating.
- Risks include cost overruns or project cancellations, but strong order pipeline and margin improvement could drive further upside.
- STM’s financials indicate rising profits, improving margins, and strong free cash flow over the next few years, with Temasek holding a significant stake.
Report Summary
- Seatrium resolved its dispute with Maersk, ensuring vessel delivery and a new credit arrangement, providing STM with interest income and removing legal uncertainties.
- Order wins and visible margin recovery support a positive outlook, with a 25.4% upside to the target price and improved financial performance projected through FY27F.
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
