Seatrium has revised its 2026 project pipeline downward to over S$28 billion (US$21.9 billion), down from S$32 billion at the end of 2025, primarily due to losing the full engineering, procurement, and construction (EPC) scope for Petrobras' SEAP-1 floating production, storage, and offloading (FPSO) vessel to rival SBM Offshore. Despite this, Seatrium remains in discussions with SBM regarding potential work on future floater projects, emphasizing that the breakdown of scope is an ongoing discussion.

Key Market Opportunities and Strategy

South America, including Guyana and Brazil, remains a key market for Seatrium, alongside emerging floating liquefied natural gas (FLNG) vessel opportunities in Africa and fixed platform contracts in the Middle East. Chief Executive Chris Ong highlighted that the company's diversified business across traditional, transition, and clean energy sectors positions it to pursue a wide breadth of opportunities, leveraging its strong competitive position, track record, and global scale. While final investment decision (FID) timing is beyond its control, Seatrium believes it is well-positioned to capture these pipeline opportunities.

Order Book and Financial Performance

As of March 31, Seatrium's net order book stood at S$15.5 billion (gross S$38.94 billion), comprising 24 projects with revenue visibility through 2033. The company continues to see improvements in gross margin performance due to an improving project mix and cost and operational efficiencies from ongoing initiatives. Non-FPSO legacy projects now account for only about 1% of the net order book after delivering two legacy projects in the first quarter. Series build projects, where payments are received at key milestones, make up over 95% of the current net order book, providing confidence in further margin improvements and lower execution risk.

Upcoming Deliveries and Business Segments

In 2026, Seatrium is scheduled to deliver the Errea Wittu FPSO (topsides integration contract from Modec, over 75% complete), the floating production unit for Shell's Sparta field in the US Gulf, and the Hoegh Gandria floating storage and regasification unit for Hoegh Evi. The company's repair and upgrade (R&U) business continues to enjoy strong repeat business, offering relatively stable earnings with a good margin spread, though no stated financial guidance is provided. Ong reiterated that executing well and replenishing the order book remain priorities, with a more in-depth pipeline update expected during the first-half results briefing.