$Seatrium (S51.SG)$ OCBC has kept its "buy" call on Seatrium...

OCBC has kept its "buy" call on Seatrium after the group announced an order win from Shell and a project cancellation from Empire Offshore Wind LLC.

Despite the positives, the team sees that the offshore wind industry has been facing challenges in recent times, including project economics from the high interest rates.

After updating their estimates for the FY2023 ended Dec 31, 2023, the team's fair value estimate (or target price) is lowered to 17.5 cents from 18.5 cents previously.

For the FY2023, OCBC is expecting Seatrium to report a patmi loss of $15.0 million. It is, however, expecting the group to turnaround to profitability with a patmi estimate of $127 million in FY2024.