Offshore, marine and energy specialist Seatrium says it has resolved its dispute with Maersk Offshore Wind, an affiliate of the Danish shipping giant.
On Oct 9, Maersk Offshore Wind terminated a US$475 million contract it had awarded to Seatrium in March 2022 to build a wind turbine installation vessel. At the time, the vessel was about 98.9% completed and was to be used in the US offshore wind farm Empire Wind 1.
Seatrium rejected the termination notice on Oct 12 and gave notice on Oct 20 that it would deliver the vessel by Jan 30 2026. Seatrium received a notice of arbitration from Maersk a day later, who asserted that “disputes” have arisen between both parties.
Seatrium says Maersk’s notice did not contain any details of the alleged disputes or the claims it is seeking. Seatrium later issued its own notice of arbitration against Maersk on Nov 28.
On Monday, Seatrium says it has reached an agreement for Maersk to take delivery of the vessel by Feb 28 2026. Upon delivery, Maersk will pay the contract balance of US$360 million. Seatrium has already collected 20% of the contract price as down payment. Both parties have agreed for Maersk to pay part of the contract price (US$250 million) via an interest-bearing credit arrangement extended by Seatrium’s subsidiary, Seatrium (SG) or SGS.
Seatrium says in a bourse filing on Dec 22 that the credit arrangement is up for 10 years and is repayable through cash generated by the vessel. SGS will also have a mortgage over the vessel and first priority rights over the vessel and Maersk’s bank accounts. Both parties will cease legal proceedings against each other.
See also: Seatrium and GE Vernova consortium wins BalWin5 contract from TenneT
Seatrium says the resolution of the dispute is not expected to have any material impact on its net tangible assets or earnings per share for FY25 ending December. The vessel is 99.8% complete as of press time.
Seatrium shares closed flat at $2.07 on Dec 19.
