Seatrium - sitting on its 200-day moving average on news of a new FPSO milestone, share buybacks and a workplace safety charge
🔦 $Seatrium Ltd(5E2.SI)$ has hogged news headlines with plenty of announcements in the month of August
On 13 Aug, the company announced that it had signed a letter of intent with Golar LNG to advance a potential third floating LNG conversion project, with an EPC contract targeted for 2H26. An upfront payment will fund Seatrium's pre-contract activities. This builds on two prior FLNG conversions already completed together (MT Newswire)
Last Thurs, the company confirmed it will deliver two FPSOs — P-80 and P-82 — to Brazilian oil giant Petrobras by end 2026. This will be the industry's first dual FPSO delivery, a significant execution milestone
Separately, Seatrium added that they are discussing a potential tie up with Petrobras to explore offshore solutions in natural gas, including the exportations of gas to Asia and other markets
⚠In negative news, Seatrium said last Fri that the company has been charged under the Workplace Safety and Health Act, though details of the specific incident and penalties were not disclosed
🆙The recent contract announcements and strong gas-related pipeline have led some brokers to raise their 2026 contract win estimates as well as target price for Seatrium, while Morningstar raised their fair value estimate of the stock to $2.90 on 4 Aug
The 12-month target price consensus for Seatrium based on a Bloomberg poll of 10 analysts currently stands at $2.46
Seatrium has been conducting on-market share buybacks consistently throughout August (notices filed on 4, 11, 18, and 25 Aug on SGX), signalling management confidence in the stock at current levels
Looking at the chart technicals, Bloomberg's AskB is noting that the stock is sitting at a key inflection point as it trades exactly at its 200-day moving average of $2.18. A sustained hold above this level, combined with the positive order flow narrative, sets up a potential grind toward the Bollinger upper band at $2.25
✳Investors keen to trade the short-term moves in Seatrium shares can consider trending call warrant $Seatrium MB eCW261230(UGWW.SI)$ (https://warrants.com.sg/tools/livematrix/UGWW) which is up two times more than Seatrium shares (+18.2% to $0.013) since the stock appeared to bottom out from its 14-month low after moving 9% higher from $2 on 20 July
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- jazzyloo·12:32Dual FPSO delivery is the headline, but the Petrobras gas export angle matters more. That opens a bigger Asia story if execution stays cleanLikeReport