Seatrium also has shipyard assets in Texas, USA and could see some order wins from the US’s push to move some manufacturing back into the country, despite the investment required and its complexities. Seatrium has a proven track record, having previously delivered a Jones-act compliant Wind Turbine Installation Vessel. The Jones Act requires that all vessels transporting goods within the United States must be USA-documented, owned, crewed, and built, making Seatrium’s experience highly valuable.
With its latest results, Seatrium has now shown that it can deliver on all 4 of its key priorities and deliver value to its long-suffering shareholders.
We have voiced our concerns multiple times about the long-term nature of Seatrium’s projects, which subject investors to tail-end risks. This is the nature of the industry and these operational risks are a feature not a bug. However, we note that the key initiatives mentioned above to drive cost-savings would also increase Seatrium’s control over the cost aspect of these tail end risks. Given these developments, we think better days are definitely ahead for Seatrium.
Seatrium used to be viewed solely as just an oil & gas play. However, it has since pivoted successfully to renewables. Seatrium now has three focal points, namely oil & gas, renewables, as well as maritime repair and upgrades.
Seatrium noted that the need to address energy security amid the global transition towards cleaner energy is likely to present significant market opportunities, despite geopolitical volatility in the near term.
Finally looking ahead, it aims to continue to seek profitable growth in oil and gas, offshore wind, repairs and upgrades, as well as new energy solutions.
Currently, about two-thirds of the world’s jack-up rigs are Seatrium’s designs and Seatrium has opened a new office in Al Khobar, Saudi Arabia to provide equipment, design, and aftersales capabilities for the drilling rig market.
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