Shares of Seatrium Ltd (5E2.SI) plunged 6.97% in Friday's pre-market trading session, following a significant announcement regarding one of its major contracts. The sharp decline comes as investors react to news of a contract termination that could potentially impact the company's financial outlook.

Seatrium Limited disclosed that it had received a notice of termination for a contract valued at approximately 475 million U.S. dollars (about 610 million Singapore dollars). The contract, awarded on March 23, 2022, was for the construction of a wind turbine installation vessel for Maersk Offshore Wind's affiliate, intended for use at the U.S. offshore wind farm Empire Wind 1. Notably, the project was reported to be 98.9 percent complete at the time of termination.

In response to this development, Seatrium's subsidiary, Seatrium Energy (International) Pte Ltd, is reviewing the validity of the termination notice and assessing its legal and commercial options. These options include contesting the termination and pursuing remedies for wrongful termination. The company is also exploring alternative solutions with the end-customer, Empire Offshore Wind LLC. Seatrium has advised shareholders to exercise caution when dealing in its securities and promised to issue further announcements on any material developments related to this matter.

Seatrium Ltd drops 6.97% at 10:53 am, Oct 10.