<div id="readability-page-1"><div><p>[SINGAPORE] Demand for Seatrium’s maintenance, repair and overhaul services (MRO) has softened amid the Middle Eastern conflict, even as the overall impact on its other operations remains limited.</p><p> Seatrium  has no major Middle East-related projects in its order book, with its presence in the region limited to its subsidiary, Seatrium Offshore Technology (SOT), which provides rig kits and MRO services. </p><p>“To date, the impact of the conflict on SOT’s rig kit supply operations in the Middle East has been limited, with no customer contract cancellations or deferments,” said Seatrium in a bourse filing on Thursday (Apr 16). </p><p>“However, MRO activity has moderated as some customers in the region have temporarily paused operations and deferred MRO services.” </p><p>Still, Seatrium does not expect the softer MRO activity to materially affect the group.</p><p>Seatrium was responding to a shareholder’s query, ahead of its annual general meeting on Apr 22, on the impact of the Middle East conflict on its regional operations, projects and delivery schedules. </p><div><div><h3>Navigate Asia in<br/>a new global order</h3><p>Get the insights delivered to your inbox.</p></div></div><p>It also addressed a separate shareholder query on whether the conflict was disrupting project timelines and supply chains for deliveries of its floating production storage and offloading units and floating production units, including those for Gulf-region clients. </p><p>The group said there are currently no projects in its order book that are bound for the impacted region. </p><p>It added that a significant portion of its work is executed through its One Seatrium Global Delivery Model and geographically diversified yard network, which improves operational agility and offers resilience against regional disruptions.</p><div><div><div><p>SEE ALSO</p><div><div><div><div><p><img height="1568" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/e5bad50fde1632d60f95d3ba11af273d9a283ab7c880c9ba706ea24f18c36af4/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="2736" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/e5bad50fde1632d60f95d3ba11af273d9a283ab7c880c9ba706ea24f18c36af4/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Seatrium sets up S$3 billion multicurrency debt issuance programme </span></h3><p></p></div></div><div><div><div><p><img height="3648" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/c30f4c83b6d43905330a95471874257a1ae11c553760bc2dfbf7a72c2ecf3ab6/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5472" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/c30f4c83b6d43905330a95471874257a1ae11c553760bc2dfbf7a72c2ecf3ab6/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>Analysts split on Singapore’s banking sector outlook even as safe-haven status remains ‘intact’</span></h3><p></p></div></div><div><div><div><p><img height="3786" src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/b690281a9394314b7540bb813ae79599a511f6f7b510b210604ee73b4161a041/query-ZHByPTEmZj13ZWJwJnc9MjQw?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="5138" original-src="https://imageproxy.pbkrs.com/https://cassette.sphdigital.com.sg/image/businesstimes/b690281a9394314b7540bb813ae79599a511f6f7b510b210604ee73b4161a041/query-ZHByPTEmZj13ZWJwJnc9MjQw"/></p></div><p></p><h3><span>As Gulf conflict rattles investors, STI listcos spend S$180 million on share buybacks</span></h3><p></p></div></div></div></div></div></div><p>“At this juncture, supply chain impact arising from the conflict remains limited and indirect,” said Seatrium.  </p><p>“In line with usual procurement risk mitigation measures, schedule buffers and early procurement strategies are in place for critical items. Key equipment for the group’s ongoing projects is also largely manufactured outside the Middle East.” </p><p>Responding to another shareholder’s query on whether higher oil prices are leading to new project enquiries, Seatrium said higher oil prices generally support capex and reinforce energy security considerations, but it is “too early to assess if this will lead to a material acceleration in new commercial opportunities”. </p><p>Such opportunities will depend on the duration and severity of the Middle Eastern supply disruption, it added. </p><p>Separately, Seatrium was also asked about its efforts to replenish its order book, which fell more than 20 per cent to S$17.8 billion as at end-FY2025. It said that it is pursuing more than S$32 billion in pipeline deals over the next 24 months across oil and gas, offshore wind, repairs and upgrades, and new energy solutions.</p><p>A shareholder also raised concerns over the wind turbine installation vessel delivery to Maesk, including its repayment timeline, interest rate and potential credit risk linked to the project’s commercial viability.</p><p>Since delivering the vessel on Feb 26, Seatrium has received payment of at least US$110 million (excluding variation orders) and started the 10-year, interest-bearing credit arrangement. The loan will be repayable through cash generated by the vessel, said the group. </p><p>Shares of Seatrium ended Friday 1.6 per cent or S$0.04 lower at S$2.42, after the announcement.</p><div><p>Decoding Asia newsletter: your guide to navigating Asia in a new global order. <span>Sign up here to get Decoding Asia newsletter.</span> Delivered to your inbox. Free.</p></div></div></div>

<p>Seatrium has reported a softening demand for its maintenance, repair, and overhaul (MRO) services due to the ongoing Middle Eastern conflict, although the overall impact on its operations is limited. The company has no major projects in the region and has not experienced any contract cancellations. MRO activities have been deferred by some customers, but Seatrium does not anticipate a material effect on its business. The company is pursuing over S$32 billion in potential deals and has implemented procurement strategies to mitigate risks from the conflict.</p>

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Seatrium customers defer maintenance and repair work amid Mid-East conflict; no material impact expected