Seatrium to sell ship owning unit to Brazilian vessel operator for US$59.7 million

[SINGAPORE] Seatrium is selling its entire stake in its wholly owned indirect subsidiary Guanabara Navegação, a ship owning company incorporated in Brazil, for US$59.7 million.

The sale is in line with Seatrium’s strategy to divest non-core assets, to enhance capital and operational efficiencies, the company said in a bourse filing on Monday (Nov 3).

The offshore and marine specialist said that it has entered a binding agreement with Brazilian vessel operator Posidonia Shipping and Trading – an unrelated third party – to divest its 100 per cent equity interest in Guanabara Navegação.

The transaction is set to complete before the end of the financial year and is not expected to result in any operational impact for Seatrium.

Posidonia Shipping and Trading provides maritime support and ship management services to customers in Brazil, with a focus on cargo transportation, including long-haul, dry and wet bulk, project cargo, vehicles and general cargo.

Guanabara Navegação is 100 per cent owned by Seatrium’s wholly owned subsidiary, long-term investment holding company FELS Offshore.

This news comes ahead of Seatrium’s third-quarter results due on Nov 13.

It also follows recent news of the company clinching S$170 million worth of repair and upgrading contracts and the potential termination of a US$475 million contract for a nearly-completed wind vessel.

The contract wins comprise major cruise, leisure and naval vessel projects, with works set to be completed by the first quarter of 2026.

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Meanwhile, the potential cancellation of a contract Seatrium inked in 2022 with an affiliate of Maersk Offshore Wind is currently undergoing arbitration. Seatrium is contesting the notice to terminate the contract, for the construction of a wind turbine installation vessel, which is about 98.9 per cent complete.

Seatrium shares ended Friday flat at S$2.17.