Lim Siew Khee of CGS International has kept her " add" call on Seatrium, following its latest contract win from longtime customer Modec estimated by the analyst to be worth $100 to $120 million.

With this order, which is to integrate topside modules for a rig to be deployed off Guyana, Seatrium' s orders won year to date has likely hit $2.2 billion. Earlier, Seatrium has announced it won a $1.8 billion contract from TenneT as well as maintenance works worth $350 million.

For now, Lim is keeping her order book forecast at $7 billion for FY2024. However, she sees a " high likelihood" of Seatrium hitting $10 billion in total orders if Seatrium wins two rig contracts from Petrobras, another long-time customer worth US$2.8 billion to US$3 billion each.

Lim expects Seatrium to start buying back shares following the 20 to 1 share consolidation, which takes effect on May 7. 

The $100 million share buyback programme was announced on April 29.

Her pre-consolidation target price, as indicated in her May 6 note, is 14 cents, equivalent to FY2024 P/BV of 1.4 times, which is based on the average trading range between Jan 2015 and Dec 2023. 

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" We stay ' add' on Seatrium as it is the only large-cap proxy in Asean  to benefit from the global offshore & marine capex cycle," says Lim.

For her, potential re-rating catalysts would include sizeable order wins. Downside risks, meanwhile, are order cancellations impacting revenue recognition and project cost overruns affecting profitability.