(Reuters) -Shipbuilder Seatrium said Denmark's Maersk terminated a $475 million contract for a nearly finished offshore wind vessel that was intended to work on a project off the coast of New York.
Maersk cancels $475 million contract for US-bound offshore wind vessel
Impact of Maersk's Contract Termination
(Reuters) -Shipbuilder Seatrium said Denmark's Maersk terminated a $475 million contract for a nearly finished offshore wind vessel that was intended to work on a project off the coast of New York.
Details of the Contract Cancellation
The wind turbine installation vessel is 98.9% complete and was built to serve Equinor's Empire Wind, Singapore-based Seatrium said in a statement on Friday.
Market Reaction and Stock Impact
A Maersk spokesperson confirmed the cancellation, citing construction delays.
Future of the Empire Wind Project
"Maersk Offshore Wind can confirm that it has terminated its newbuilding contract with Seatrium Energy (International) Pte. Ltd. (formerly Sembcorp Marine Rigs & Floaters Pte. Ltd.) in Singapore for the construction of a Wind Installation Vessel due to delays and related construction issues," Maersk spokesperson Caroline Knox said in an email.
Seatrium's Legal Considerations
Seatrium shares slid 6.5% on the Singapore stock exchange following the announcement.
Equinor's Response and Alternatives
The announcement is the latest sign of trouble in the U.S. offshore wind industry, which the administration of U.S. President Donald Trump has vowed to stop.
Empire Wind was embroiled in Trump's assault on offshore wind earlier this year when his administration issued a month-long stop work order on the project.
Seatrium said it was evaluating its options for the vessel, including with Empire Wind. It also said it could take legal action over the contract termination.
Equinor said it was weighing its alternatives.
“We have been informed by Maersk of an issue concerning its contract with Seatrium related to the wind turbine installation vessel originally contracted by Empire Offshore Wind LLC for use in 2026. We are currently assessing the implications of this issue and evaluating available options.”
(Reporting by Nichola Groom; Editing by Elaine Hardcastle and Nick Zieminski)
