Seatrium H1 profit quadruples to S$144.4 million on strong order book, margin growth
Some S$14 million has been reversed from provisions for fines as the company settles decade-long corruption case
[SINGAPORE] Seatrium’s net profit for the six months ended Jun 30 grew 301.3 per cent to S$144.4 million, from S$36 million during the same period last year, marking the second time of net profits for the first half since its reconstitution in 2023.
Revenue for H1 was up 33.7 per cent at S$5.4 billion, from S$4 billion in the corresponding period in 2024, “reflecting strong execution of its robust order book”, said the offshore and marine specialist in a bourse filing on Thursday (Jul 31).
Gross margin was up at 7.4 per cent for H1, from 3.7 per cent a year earlier, “driven by a shift towards higher-margin projects and enhanced cost management”, said Chris Ong, chief executive officer of Seatrium, during a results briefing on the same day.
This translated to a 31 per cent increase in earnings before interest, taxes, depreciation and amortisation at S$407 million, from S$311 million in the year-ago period, he noted.
As at end-June, Seatrium’s net order book stood at S$18.6 billion, of which S$6.3 billion, or 34 per cent, are renewables and cleaner solutions, it highlighted.
“Seatrium continues to benefit from a diversified and resilient order book that extends through to 2031,” said Ong, adding that the order book not only strengthens the company’s revenue visibility, but also helps buffer the impact of short-term market volatility.
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Earnings per share (EPS) for the period stood at S$0.0426 from an EPS of S$0.0105 in the year-ago period.
No dividend was proposed for the period, same as in H1 2024.
Revenue visibility
Besides a healthy order book that extends through to 2031, Seatrium is actively pursuing a pipeline of projects valued at S$30 billion for the near term, Ong noted.
He said that all the projects, under the tendering process, partly reflect strong market sentiments driven by continuously rising energy demands across geographies, as countries balance energy transition ambitions and energy security needs.
Despite policy uncertainty across different governments, Ong sees the trend “as an opportunity than a risk”.
He explained: “Because at the end of the day, when we talk about energy security needs and demands, there will be very complex projects that are required to unlock energy supply.”
Seatrium’s chief financial officer Stephen Lu highlighted that the oil and gas sector, with 12 active projects, generated 26.5 per cent more revenue on the year at S$3.6 billion, “mainly driven by steady execution and progressive revenue recognition for the six newbuild Petrobras FPSOs (floating production storage and offloading units)”.
The sector alone contributed 68 per cent of the company’s total H1 revenue, he pointed out.
Ong said: “Looking ahead, we see a robust pipeline (in the oil and gas segment) across Brazil, the Middle East and the Gulf of America, with opportunities exceeding S$19 billion – reflecting both market demand and confidence in Seatrium’s capabilities.”
He added: “Despite short-term market volatility from rising trade tensions, energy transition and security remain global priorities... With strategic focus on offshore oil and gas, wind, maritime upgrades, and early moves in carbon capture and new energy, we’re ready to capture market momentum.”
Operation Car Wash update
Ong updated that Seatrium had signed a leniency agreement with the rest of the Brazilian authorities on Thursday morning, after an equivalent agreement with the country’s Public Prosecutor’s Officer was signed on Wednesday, settling the decade-long corruption probe under Operation Car Wash.
On Wednesday, Seatrium also signed a deferred prosecution agreement with the Singapore authorities, which is subject to approval by the High Court.
The issue, involving Seatrium’s former incarnation – the Sembcorp Marine group, would cost Seatrium fines totalling about S$241.7 million to settle with both Brazilian and Singapore authorities.
In the financials released on Thursday, Seatrium highlighted that there is no material impact from the settlements to its net earnings and net tangible asset per share for financial year 2025, as it had made provisions of a total of S$258.9 million since FY2023.
“In line with this, we have reversed S$14 million in provisions for the period ending Jun 30, 2025,” said Ong.
Shares of Seatrium were down S$0.10 or 4.2 per cent at S$2.30 as at the midday market break on Thursday, after diving as much as 5.4 per cent in morning trades.
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