Seatrium Announces Major Non-Core Asset Divestments to Drive S\$50M in Annual Cost Savings by Early 2026

Singapore, 23 February 2026 – Seatrium Limited (“Seatrium”, or the “Group”) has unveiled a sweeping series of non-core asset divestments as part of an intensified strategy to rationalise its asset portfolio, streamline operations, and deliver robust long-term shareholder value. The Group expects these transactions, once completed by early 2026, to collectively generate more than S\$50 million in annualised operational cost savings.

Key Highlights for Investors

• Over S\$50 Million in Annualised Operational Cost Savings: These savings are expected to be realised following the completion of asset sales by early 2026, potentially boosting Seatrium’s profitability and enhancing cash flows.
• Acceleration of Non-Core Asset Divestments: The latest divestments follow earlier sales including the AmFELS yard in Texas and GNL Platform Supply Vessels in 2025, forming a critical part of Seatrium’s asset optimisation strategy.
• Strategic Refocus: The company is sharpening its competitive edge by concentrating resources on core businesses, increasing agility, and optimising its cost structure.
• Global Streamlining: With a refined footprint of shipyards, engineering & technology centres, and facilities, Seatrium aims to better capture emerging opportunities in the offshore, marine, and energy industries.

Details of Divestments

1. Tugboat Fleet Divestment (January 2026)

• Transaction Value: S\$104 million
• Assets Involved: Fleet of 17 tugboats in Singapore
• Buyers: KST Maritime Pte. Ltd. and Maju Maritime Pte. Ltd. (unrelated third parties, both established tugboat towage service providers)
• Operational Impact: Seatrium has entered into a towage services agreement with KST Maritime to ensure continuity of tugboat services at its Singapore shipyards. The model shifts from asset ownership to outsourced service, expected to yield long-term cost efficiencies.
• Completion Timeline: Targeted by Q1 2026

2. Can-Do 2 Floating Dock Divestment (January 2026)

• Transaction Value: S\$16.9 million (cash)
• Buyer: Winter Park Trading – F.Z.E (unrelated third party)
• Asset Status: The floating dock, a non-core asset moored in Crescent Yard, will be scrapped and recycled.
• Operational Impact: Eliminates associated vessel licence fees, insurance, and other operating expenses, further reducing Seatrium’s cost base.
• Completion Timeline: Targeted by Q1 2026

3. Karimun Yard Divestment (December 2025)

• Transaction Value: S\$22 million (cash)
• Buyer: PT Tirta Segar Alami, a Salim Group related party
• Asset Details: Karimun Yard on Karimun Island, Indonesia. The assets were fully written down prior to sale and transacted on an “as is, where is” basis.
• Strategic Rationale: This sale centralises Seatrium’s Indonesian yard operations within its larger Batam facility, improving capital and operational efficiencies. Most land leases at Karimun Yard expire in September 2026, and the site’s activities had already tapered down, with works relocated to nearby facilities to ensure a smooth transition.
• Completion Timeline: Expected by Q1 2026, pending customary closing conditions

4. Crescent Yard Divestment (Expected Q1 2026)

• Transaction Value: S\$12.5 million (cash)
• Buyer: Mooreast Holdings Ltd., following exercise of an option granted in June 2024
• Strategic Rationale: Further streamlines Seatrium’s Singapore asset base, releasing capital from surplus facilities

Implications for Shareholders

• Significant Cost Savings: The anticipated S\$50 million+ in annual operational savings is expected to improve Seatrium’s earnings profile and overall financial resilience, a potentially price sensitive development for investors.
• Optimised Asset Base: By shedding non-core and underutilised assets, Seatrium can focus resources on high-potential business segments, potentially enhancing future returns.
• Positive Cash Inflows and Balance Sheet Strengthening: The divestments are all cash transactions, collectively exceeding S\$150 million, which will strengthen the Group’s balance sheet.
• Strategic Partnerships and Outsourcing: The move towards outsourcing for tugboat operations demonstrates a shift to a lighter, more flexible cost structure, reducing capital intensity and ongoing operating expenses.
• Portfolio Rationalisation: These actions are part of a broader, ongoing review, with further non-core asset divestments possible, signalling continued management focus on value creation.

About Seatrium Limited

Seatrium Limited is a leading provider of engineering solutions for the global offshore, marine, and energy sectors. Headquartered in Singapore, the Group boasts over six decades of expertise in designing and constructing rigs, floaters, offshore platforms, and specialised vessels. Seatrium is also active in repairs, upgrades, conversions, and new energy segments, with a marked focus on sustainability and energy transition.

The Group serves major energy companies, vessel owners/operators, and shipping/cruise firms worldwide through its global network spanning Singapore, Brazil, China, India, Indonesia, Japan, Malaysia, the Philippines, Norway, Saudi Arabia, UAE, UK, and the USA.

Contact for Further Information

Ms Amelia Lee
Head, Investor Relations and Corporate Communications
Tel: +65 6803 0053
Email: [email protected]

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult with professional advisors before making investment decisions. The information provided is based on company announcements as at 23 February 2026 and may be subject to change.

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