Seatrium shares dip after customer terminates $616m vessel contract

Seatrium said on Oct 10 that its customer Maersk Offshore Wind sent a notice of termination a day earlier for a US$475 million (S$616.2 million) contract to build a vessel that is already 98.9 per cent completed.

- Ann Williams Assistant Business Editor

The company’s shares sank on the news, closing down 6.6 per cent, or 16 cents, to $2.28 on Oct 10. The stock was the most heavily traded by value, with 57.2 million shares changing hands.

The contract was won by subsidiary Sembcorp Marine Rigs & Floaters, now known as Seatrium Energy (International), back in March 2022.

The wind turbine installation vessel was slated for use in a US offshore wind farm, Empire Wind 1.

Seatrium said it will explore viable solutions, including with the end customer, Empire Offshore Wind. It is currently reviewing the validity of the notice of termination, as well as the allegations within, the company said.