Seatrium has commenced share buybacks on June 4, just over a month after it announced a $100 million programme to do so.
The company paid an average of just over $1.77 to buy back 1,058,000 shares.
According to Seatrium back in April 29, the repurchased shares will be held as treasury shares which will in turn be deployed for its existing employee share plans, be used to pay the share component of the directors’ fees, or cancelled against the group’s share capital to increase shareholder returns.
"Taking into consideration Seatrium’s improved financial position as well as capital requirements for future growth plans, the share buyback programme provides for a systematic share purchase approach that signals the group’s commitment to further align its interest with shareholders," says Seatrium.
On May 27, the company announced the long-awaited contract for two FPSOs from regular customer Petrobras.
At $11 billion, the contract is bigger than the $8 to $9 billion some analysts were expecting.
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In a separate announcement on June 5, Seatrium says it has been awarded a letter of intent (LOI) by BP Exploration & Production (BP) to conduct “certain early engineering works”. This is pending the finalisation of a definitive contract for engineering, procurement, construction and commissioning (EPC) work for BP’s Kaskida floating production unit (FPU) project in the US Gulf of Mexico.
The project is a greenfield development that’s located some 250 miles southwest of New Orleans in the Keathley Canyon area of the Gulf of Mexico.
The Kaskida FPU comprises a single topside module supported by a four-column semi-submersible hull. It is supported by subsea production wells located in a water depth of some 6,000 feet.
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The contract award is subject to mutually agreed terms and conditions, approval from management, as well as the final investment decision by BP.
“We are pleased to secure the Letter of Intent with BP for the Kaskida development. This award reflects our expertise and successful track record of delivering complex FPUs," says William Gu, executive vice president, oil & gas (international), Seatrium.
"Over the years, Seatrium has established itself as the market leader in EPC projects for FPUs. We look forward to the opportunity to contribute to the success of the Kaskida project,” he adds.
