Seatrium shares plunge 7.8% after US$475 million Maersk offshore Wind contract termination
Citi analyst Luis Hilado said the contract termination will likely have a negative near-term impact on its shares
[SINGAPORE] Shares of Seatrium plunged as much as 7.8 per cent on Friday morning after it announced the termination of a US$475 million contract for nearly-complete wind turbine installation vessel.
The counter dropped S$0.19 to S$2.25 as at 9.39 am, before inching up to S$2.29 as at 10.20 am.
The contract was inked with a Maersk Offshore Wind affiliate in 2022 for the construction of a wind turbine installation vessel at the US offshore wind farm, Empire Wind 1. The vessel is about 98.9 per cent complete.
In a bourse filing, Seatrium said that it is evaluating its legal and commercial responses for “wrongful termination” and is exploring “viable solutions”, including with the end-customer, Empire Offshore Wind.
Citi analyst Luis Hilado said: “We believe the development is likely to have a negative near-term impact on the share price.”
