Seatrium, a Singapore-based shipbuilder, had a wind turbine installation vessel order canceled by the shipowner, Maersk. The two parties eventually reached a settlement, with the shipowner borrowing $250 million from the shipbuilder to pay for the construction contract.
Recently, Seatrium responded to questions raised by shareholders regarding “the repayment schedule and interest rate for the loan arranged for this wind turbine installation vessel, as well as whether Seatrium would face credit risks if the commercial viability of the Empire Wind 1 offshore wind farm in the U.S.—where the vessel is scheduled to operate—were to be compromised.”
Seatrium stated that the wind turbine installation vessel of interest to its shareholders was delivered by its Tuas Boulevard shipyard on February 26, 2026, and that the company has received at least $110 million in payments following delivery (excluding payments for change orders). Additionally, in accordance with the announcement dated December 22, 2025, a 10-year interest-bearing credit facility has been initiated, which will be repaid using cash flow generated by the wind turbine installation vessel.
Seatrium disclosed: “The interest rate on the $250 million loan for this wind turbine installation vessel is consistent with current market benchmarks for asset-backed credit facilities. The loan is secured by the vessel, and Seatrium holds a first-priority lien on the vessel and the bank accounts of Maersk Offshore Wind, thereby safeguarding shareholder interests.”
Seatrium also emphasized: “The global offshore wind market still holds long-term growth potential, and noted that this Maersk wind turbine installation vessel can be deployed in other regions and is not limited to the U.S. market. Given the limited supply of wind turbine installation vessels to meet growing demand, the vessel’s market valuation is expected to remain above $250 million.”
In summary, Seatrium believes that, leveraging the momentum of the offshore wind market, Seatrium is confident in its ability to withstand the risks posed by unforeseen circumstances related to the mortgage on this wind turbine installation vessel.
Previously, in October 2025, Maersk Offshore Wind and its affiliate PHOENIX II A/S unilaterally terminated the wind turbine installation vessel construction contract signed with Seatrium Energy International (SEI), a subsidiary of Seatrium, and subsequently initiated arbitration; in response, SEI filed for arbitration against the shipowner in November 2025; in December 2025, the two parties reached a settlement. At the time the cancellation was announced, construction of the wind turbine installation vessel was 98.9% complete.
On February 26, 2026, Seatrium’s Tuas Boulevard shipyard successfully delivered this wind turbine installation vessel ordered by Maersk Offshore Wind, two days ahead of the delivery date specified in the settlement agreement.
As this wind turbine installation vessel is the only contract in Seatrium’s order book that does not utilize milestone-based payment terms, the shipbuilder will receive 80% of the contract value upon delivery. Based on a construction cost of $475 million, the outstanding balance amounts to $380 million, of which $250 million will be financed by Seatrium through a ship mortgage loan—specifically, the aforementioned 10-year interest-bearing credit facility.
According to records, construction of this wind turbine installation vessel officially commenced in the fourth quarter of 2022, with the vessel launched in the second quarter of 2025 and scheduled for delivery in February 2026. Custom-designed and built by Seatrium, the vessel is intended for the installation of the world’s largest offshore wind turbines and is the first of its kind globally. It is equipped with a 1,900-ton main crane with a lifting height of 180 meters, capable of supporting the installation of 15 MW-class and larger offshore wind turbines.