Seatrium Sees Surge in LNG Demand Amid Global Energy Shifts

SINGAPORE – Seatrium, a key player in offshore engineering, has reported a remarkable 158% increase in net profit for the first half of 2026, reaching S$372.9 million. This surge is attributed to heightened demand for liquefied natural gas (LNG) infrastructure, driven by the ongoing conflict in Iran, which has disrupted traditional energy supply routes and heightened the urgency for energy security.

During a results briefing on July 31, CEO Chris Ong highlighted that the geopolitical landscape is reshaping global energy flows, prompting countries to seek alternative energy sources. He stated that the situation has led to questions about infrastructure investment. With the closure of the Strait of Hormuz, a critical shipping lane for oil and gas, governments are increasingly investing in LNG solutions, which are seen as a quicker means to secure energy supplies.

“How do I secure my feedstock, and how do I power my homes? That has led to the question on infrastructure investment.”Chris Ong, CEO

Seatrium has positioned itself as a leader in the LNG sector, being one of the few shipyards globally capable of designing and constructing floating storage and regasification units (FSRUs) and floating liquefied natural gas (FLNG) platforms. The company has executed over 90% of the world’s conversions of existing vessels into these specialized units. Ong noted that the pipeline for gas conversions is growing, and the company intends to take the leading share of it. The firm is currently pursuing S$32 billion in global project opportunities over the next two years, with S$21 billion attributed to oil and gas projects.

In addition to its LNG ventures, Seatrium is exploring opportunities in offshore wind energy, anticipating long-term demand supported by grid upgrades in Europe and ambitious renewable energy targets across the Asia-Pacific region. Ong expressed optimism about the potential for growth in Europe’s offshore wind market and noted that the company is actively engaged in exploring projects in Taiwan, its main market in the region.

“The pipeline for gas conversions is growing, and we intend to take the leading share of it.”Chris Ong, CEO

Despite the challenges posed by the Iran conflict, which has affected logistics such as flight availability, Seatrium's maintenance, repair, and overhaul business remains unaffected. Ong confirmed that project tenders continue to flow in, indicating a robust demand for the company’s services.

“Our FPSO business is where we see the most visible near-term opportunity.”Chris Ong, CEO

Seatrium's revenue for the first half of 2026 reached S$5.6 billion, a 4.7% increase from the previous year, with the oil and gas segment contributing S$4.2 billion. Notably, the company has also announced a new share buyback program, further signaling confidence in its business outlook. Ong remarked that the FPSO business is where the company sees the most visible near-term opportunity, referring to contracts in the billion-dollar range for floating production storage and offloading units (FPSOs) for major clients like Petrobras and BP.

Looking ahead, Seatrium expects its net profit for FY2026 to be significantly higher than FY2025, bolstered by strong project pipelines and a focus on high-margin projects. The company’s net order book stood at S$13.3 billion as of June 30, encompassing 24 projects with deliveries extending through to 2033.