Seatrium H1 net profit jumps 158% to S$373 million on asset sales, higher margins

[SINGAPORE] Seatrium’s net profit for the first half ended Jun 30 surged 158 per cent to S$372.9 million from S$144.4 million in the year-ago period, driven by asset divestment gains and improving margin efficiency.

Excluding one-off divestment gains, net profit grew 54 per cent year on year to S$212 million, up from S$138 million in H1 2025. The marine and offshore specialist issued a positive profit guidance last week, causing its counter to rise 8.9 per cent.

Revenue for H1 2026 rose 4.7 per cent to S$5.6 billion, from S$5.4 billion in the corresponding period the year before, supported by steady execution of its order book, the company said on Friday (Jul 31).

Gross profit for the half year increased 22.1 per cent to S$482.3 million, with gross margin expanding to 8.6 per cent from 7.4 per cent a year earlier. This was driven by a growing mix of higher-margin projects and reduced overheads from strategic divestments and productivity gains.

The group recorded net divestment gains of S$172 million during the period from the sale of non-core assets, compared with S$7 million in H1 2025. Earnings before interest, taxes, depreciation and amortisation, excluding divestment gains, rose 20 per cent to S$479 million.

Basic earnings per share stood at S$0.1101 a share, compared with S$0.0426 a share in the same period the prior year.

No dividend was declared for the half year, unchanged from the previous year.

As at Jun 30, Seatrium’s net order book stood at S$13.3 billion, comprising 24 projects with deliveries extending through to 2033. Series-build projects accounted for more than 95 per cent of the order book, while lower-margin legacy non-FPSO (floating production, storage and offloading) projects fell to under S$140 million, or about 1 per cent of the net order book.

The group said it is pursuing a global project pipeline exceeding S$32 billion over the next 24 months across oil and gas, offshore wind and conversions.

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“Our solid H1 results reinforce the consistent progress we are making towards building a resilient and more profitable Seatrium,” said Chris Ong, CEO of Seatrium. “In an increasingly volatile macroeconomic environment, disciplined execution and stronger margins are key for long-term earnings resilience.”

Seatrium expects key margin drivers to sustain into the full year to deliver progressive margin improvements. Together with one-off divestment gains, the group expects its FY2026 net profit to be materially higher than FY2025.

Net asset value per share rose to S$2.17 as at end-June, up from S$2.04 as at Dec 31.

In the first half of the fiscal year, Seatrium found that it will not face criminal prosecution in Singapore over corruption offences in Brazil. This was after the High Court approved a deferred prosecution agreement in which the company will pay a net sum of US$57 million to local authorities.

It also launched a S$3 billion multicurrency debt issuance programme in April, two months after it delivered a US$475 million wind turbine installation vessel that was targeted by a stop-work order by US President Donald Trump to Maersk Offshore Wind.

Shares of Seatrium fell 1.9 per cent or S$0.04 to close at S$2.12 on Thursday.