It recovers from a steep drop after being booted out of MSCI Singapore index

 

SHARES of Seatrium made a strong comeback at Monday&rsquo s (May 27) opening bell after the company secured S$11 billion worth of new contracts.

 

The counter rose 10.4 per cent, or S$0.16, with 9.3 million shares changing hands as at 9.01 am on Monday.

 

Its shares eventually closed up 11.7 per cent or S$0.18 at S$1.72, recovering from a steep drop after being booted out of MSCI Singapore index on May 15.

 

Seatrium was also the top traded counter by volume, with more than 113.9 million shares traded over the day.

 

On Saturday, the offshore and marine specialist said that it has secured S$11 billion worth of contracts to build two new floating production storage and offloading vessels (FPSOs) for Brazil&rsquo s national oil company, Petrobras.

 

Construction will commence in the first quarter of 2025, with final delivery expected in 2029. Seatrium&rsquo s facilities in Brazil, China and Singapore will manufacture 60,000 tonnes of modules for the FPSOs, with integration and commissioning in Singapore.

 

Each of the two FPSOs will have a production capacity of 225,000 barrels of oil per day and a gas processing capacity of 10 million cubic metres per day.

 

The projects will also incorporate measures to control emissions and capture carbon dioxide, and improve energy efficiency to reduce greenhouse gas emissions intensity by 30 per cent. They will also have zero routine &ldquo flaring and venting&rdquo &ndash a practice where oil field operators burn off or release the gases emitted during oil production, said Seatrium.