Seatrium says that revenue is being recognised for its nearly-completed US offshore wind projects — Empire Wind 1 and Revolution Wind — even as the sector is hit by a government suspension.
"The projects are on progressive milestone payments and revenue would be recognised as per usual practice of completion percentage methodology," says a spokesperson to The Edge Singapore on Dec 23. Seatrium adds that it continues to “closely monitor” the developing situation.
On Dec 22, the United States Department of Interior (DOI) issued a stop-work order for five offshore wind farm projects due to “national security risks” identified by the Department of War.
The affected projects are Empire Wind 1 and Sunrise Wind in New York, Vineyard Wind 1 off the coast of Massachusetts, Revolution Wind off Rhode Island and Coastal Virginia Offshore Wind in Virginia.
Seatrium is currently building two units of offshore wind substations for Revolution Wind and an offshore substation for Empire Wind 1. The two respective customers for the projects are Orsted and Equinor.
According to the Seatrium spokesperson, the substations are “close to 100% completion” and have sailed away, on schedule for delivery in the first quarter of 2026.
See also: Seatrium resolves US$475 mil contract dispute with Maersk
In addition to reassurances about the substations, Seatrium has also reiterated that “nothing has changed” with respect to its settlement with Maersk Offshore Wind affiliate Phoenix II.
Just hours before the DOI’s announcement, Seatrium had announced that it had successfully resolved a dispute with Phoenix II. The conflict was over the latter’s decision to unilaterally cancel a contract with Seatrium on Oct 9 for a nearly completed wind turbine installation vessel (WTIV) that would be deployed to Empire Wind 1. The two parties subsequently commenced arbitration proceedings against one another before announcing that the dispute was resolved on Dec 22.
Under the terms of the agreement, upon delivery of the WTIV in February 2026, Seatrium will receive around US$110 million. Seatrium will extend a 10-year credit facility for the remaining US$250 million which will be repaid by cash generated from the vessel. Seatrium adds that the credit arrangement is “mortgage backed” by the vessel, with Seatrium having “first priority rights” over the vessel and the buyer’s bank accounts.
See also: Seatrium and GE Vernova consortium wins BalWin5 contract from TenneT
Seatrium is also confident that the vessel is worth “well over US$250 million” and can be redeployed and/or sold to other geographies.
Citi Research analyst Luis Hilado says that it is “fortunate” that Seatrium arrived at the resolution with Maersk before the suspension.
At around 4.10 pm, Seatrium's shares are trading at $2.12, down one cent or 0.5%.
