SEATRIUM LTD stock forum
5E2 Offshore Marine Sector Poised for Growth in 2025: Trump’s ‘Drill Baby Drill’ Mantra Boosts Sentiment:
Key Highlights
Seatrium holds a strong competitive position in the global offshore marine sector and is a key beneficiary of the positive dynamics expected in 2025.
The company is actively building eight out of Petrobras’ eleven Floating Production Storage and Offloading units (FPSOs) set to be deployed offshore Brazil between 2H24 and 2028.
Petrobras plans for an additional 7-11 FPSOs to come online post-2029, potentially worth \$20 billion to \$30 billion, with contracts likely to be awarded within the next 12-24 months.
Seatrium expects limited new rig supply over the next 2-3 years, a trend that should benefit Keppel’s efforts to sell its 13 legacy rigs.
Financial Metrics
The stock has a target price of S\$2.80, implying a 25.6% upside from its current price of S\$2.23. For 2024, the company’s revenue is forecasted at S\$8.343 billion, with a projected profit of S\$105 million. Notably, Seatrium’s P/B multiple of 1.4x is 1SD above its five-year average, reflecting its strong global position.
Recommendation
UOB Kay Hian recommends a BUY rating for Seatrium, emphasizing its exposure to strong offshore marine dynamics, rising vessel demand, and opportunities in renewables. Thank you
5E2 Seatrium Ltd and its peers demonstrate diverse strengths and growth potentials across the offshore and marine sector. While STM shows promising recovery in its financials and gross margins, competitors like Yangzijiang Shipbuilding and Keppel Ltd remain strong contenders in their respective markets. With strategic contract wins and robust ESG initiatives, STM is well-positioned for sustained growth.Thank you
5E2 Seatrium: Capturing Brazil’s Offshore Renewable Boom
Seatrium is strategically poised to ride the wave of renewable energy growth, especially in Brazil, a country with untapped offshore wind potential. With no offshore wind installations currently in place, Brazil has set ambitious plans to install 700 GW of capacity—a monumental shift toward clean energy. Industry giant Petrobras, in collaboration with Norway’s Equinor, has already unveiled offshore wind projects totaling 37.4 GW.
Seatrium’s robust track record positions it as a prime player to capitalize on this unprecedented market opportunity. Backed by UOB Kay Hian’s “BUY” recommendation, the company is priced at S$2.31 with an optimistic Price-to-Book (P/B) ratio of 1.15x, reflecting its solid future outlook and a valuation based on its projected 2025 book value of S$2.01.
The chart is turning bullish
Thank you