Seatrium achieves first full-year profit with S$120.9 million H2 earnings

SEATRIUM swung into the black with a net profit of S$120.9 million for the second half ended Dec 31, from a net loss of S$1.8 billion in the same period a year earlier.

Together with a H1 turnaround, the offshore and marine specialist marked its first full-year profit since its reconstitution in 2023.

The H2 earnings were attributed to higher contributions from revenue recognition, fair-value gain on investments, as well as share of profit from associates, the group said on Friday (Feb 21).

Earnings per share (EPS) for the period stood at S$0.0356, compared with a loss per share (LPS) of S$0.5137 in the year-ago period.

With the completion of the share consolidation of every 20 existing shares into one consolidated share on May 9 last year, prior-year comparatives for EPS were restated accordingly.

On its return to profitability, Seatrium has proposed a final dividend of S$0.015 per share. It will be paid on May 19, after the record date of May 7.

Revenue for the half year rose 18.4 per cent to S$5.2 billion from S$4.4 billion on execution of a larger order book.

Adrian Teng, Seatrium’s chief financial officer, said: “Second-half revenue was mainly from the six FPSO (floating production storage and offloading) projects for Petrobras, the three 2-GW HVDC offshore converter platform projects for TenneT, and increased contribution from repairs and upgrades.”

For the financial year 2024, the group recorded a net profit of S$156.8 million, from a loss of S$2 billion for FY2023.

EPS stood at S$0.0461, compared with an LPS of S$0.6477 in the prior year.

Revenue for the year rose 26.6 per cent to S$9.2 billion from S$7.3 billion, due to stronger project execution of a growing order book and higher-value work in repairs and upgrades, noted Teng.

In FY2024, Seatrium secured order wins worth S$15.2 billion. It delivered seven projects and completed 231 in the repairs and upgrades segment.

“In the year to date 2025, our net order book stood at S$23.2 billion, up from S$16.2 billion in the previous period. Our order book comprises 27 projects with deliveries till 2031, giving us revenue visibility and a good foundation for the years ahead,” Teng added.

He also highlighted Seatrium’s capital management with active loan repayment and refinancing efforts.

As at end-2024, Seatrium’s net debt stood at S$689 million, an 8 per cent reduction from last year’s S$747 million. Net leverage ratio as at end-December declined to 1.1 times from 3.2 times in the prior year.

Outlook

Chief executive officer Chris Ong said that despite near-term geopolitical risks, the need to address energy security while transitioning towards cleaner energy globally presents significant market opportunities.

“Our focus on oil and gas and renewables solutions, as well as maritime upgrades, positions us favourably to capitalise on the energy market tailwinds.”

Amid tariff uncertainty, he highlighted the importance of choosing a strategic location for component construction. “I think integration in Singapore is a very powerful tool for a lot of our customers,” he added.

He also said that while companies cannot control geopolitical situations, Seatrium is focusing on fundamentals, building capabilities and maintaining customers’ trust.

Looking ahead, it aims to continue seeking “profitable growth” in oil and gas, offshore wind, repairs and upgrades, as well as new energies.

“With a strong order win momentum in FY2024, the group will stay focused on executing its robust order book, which underpins revenue and cash flow visibility over the next few years,” said Ong.

As of 12 pm on Friday, shares of Seatrium had fallen 4.8 per cent or S$0.12 to S$2.38 on a cum-dividend basis.