Seatrium stock inches up as Petrobras arbitration reopens P-54 payment fight

Singapore, Feb 10, 2026, 15:11 (SGT) — Regular session

• Seatrium stock edged up roughly 0.5%, hitting S$2.10 during Tuesday’s afternoon session.
• Jurong Shipyard has initiated arbitration proceedings with Petrobras Netherlands, seeking to recover a withheld payment of US$55.7 million related to the P-54 FPSO conversion agreement.
• Petrobras is seeking a net US$79.6 million over what it claims were excess payments. Seatrium, for its part, said it’s too early to assess the potential financial hit.

Seatrium ticked up on Tuesday, with shares rising 0.48% to S$2.10 by 2:59 p.m. in Singapore. The offshore and marine group revealed it’s facing a new arbitration dispute—this one involving Petrobras and a legacy FPSO contract. 1

This shift is significant—legal claims have a way of morphing into unexpected cash demands or booking charges, sometimes long after a project wraps up. For Seatrium, the development brings back an old concern for investors: just how much risk is still lurking in those legacy contracts?

Here, it comes down to withheld funds and fresh demands for repayment. Traders generally view this kind of situation — disputed amounts, back-and-forth claims, no firm timeline — as a valuation drag until there’s either a settlement or an award.

Jurong Shipyard, a wholly owned Seatrium subsidiary, has launched arbitration against Petrobras Netherlands over their 2004 contract to convert the P-54 FPSO—an offshore vessel that produces, stores, and offloads oil. According to Seatrium, the parties agreed in a 2008 settlement to a close-out payment of S$205.6 million (US$152.3 million). Of that, S$75.2 million (US$55.7 million) was held back, awaiting a Brazilian audit. Petrobras now claims a net overpayment of S$107.5 million (US$79.6 million). The arbitration, Seatrium says, is happening in London, applying UNCITRAL rules and English law. 2

Seatrium reported it holds no balance-sheet exposure to the US$55.7 million in question and hasn’t set aside any provision. According to the company, the proceedings remain at an early stage, making it “unable to definitively ascertain the financial impact, if any.” For now, Seatrium expects “no financial impact.” Shares finished Monday up 1.5%, closing at S$2.09. 3

Arbitration happens outside the courts, private and often unpredictable. Investors sometimes react to every new filing or procedural update — or when the size of claims shifts — long before any final decision arrives.

The risk is clear enough. A negative outcome might force a payout, legal expenses, or a hit to both profits and sentiment. Even if the ruling goes their way, timing and the chance of recovery remain uncertain. Petrobras, for its part, is also pursuing claims linked to this same contract chain.

The focus now shifts to Seatrium’s earnings, set for Feb. 26. On that day, investors will be zeroing in on provisions, contingencies, and whatever fresh details emerge on the case timeline. 4