Seatrium H2 profit up 48.3%; full-year profit doubles on stronger margins, oil and gas revenue
The company proposed a final dividend of S$0.03 a share, double the previous year’s
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[SINGAPORE] Offshore and marine group Seatrium posted a 48.3 per cent rise in net profit to S$179.3 million for the second half of the year ended Dec 31, 2025.
For the full year, its net profit doubled to S$323.6 million, from S$156.8 million in FY2024. This was on the back of stronger margins, revenue growth in the oil and gas and offshore wind segments, as well as lower net finance costs.
With the strong performance, Seatrium proposed a final cash dividend of S$0.03 per share, payable on May 18 after the record date of May 6. This is double the previous year’s final dividend of S$0.015.
The company is “balancing re-investment for growth with consistent capital returns” to create value for shareholders, said its chief executive Chris Ong at an earnings briefing on Thursday (Feb 26).
It also plans to continue share buybacks under its existing S$100 million programme. This reflects “confidence in the business and in the momentum ahead”, said Ong.
Seatrium’s shares climbed 4.1 per cent to S$2.30 at market open after the results were announced. They later pared some of the gains to close at S$2.28, up 3.2 per cent.
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The market cheer follows a challenging 2025 for the offshore and marine players, with tariffs and geopolitical uncertainty. Seatrium itself was hit by US$475 million contract termination for a nearly completed wind vessel in October last year, but later resolved the dispute.
Growth in oil and gas, offshore wind
Seatrium’s H2 revenue rose 17 per cent to S$6.1 billion. Meanwhile, full-year revenue rose 24.3 per cent to S$11.5 billion, driven by the oil and gas and offshore wind segments.
Revenue in the oil and gas segment rose 24 per cent to S$8.1 billion in FY2025, Seatrium’s chief financial officer Stephen Lu noted at Thursday’s briefing.
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This was driven by “steady execution” and progressive revenue recognition of newbuild floating production storage and offloading (FPSO) units for Brazil’s Petrobras, particularly the P-84 and P-85 projects, Lu said.
Offshore wind revenue was up about 60 per cent in FY2025 to S$2.1 billion, driven by three high-voltage direct current platform projects for European grid operator TenneT.
That said, full-year revenue in the repairs and upgrades segment fell about 25 per cent to S$0.8 billion.
This was due to trade uncertainty and weakness in the market for liquefied natural gas carriers, said Lu, adding: “We are, however, continuing to focus the business towards higher-value projects.”
He also highlighted that the full-year gross margin had improved “sharply” to 7.4 per cent, from 3.1 per cent in the year-ago period.
This was due to a better project mix, improved yard utilisation, productivity gains and “Series Build” projects, which are repeatable and enhance cost efficiency. The margin expansion was however partially offset by provisions for US projects.
The company’s active refinancing efforts also drove down the weighted average cost of debt to 3.4 per cent, from 4.9 per cent as at end-2024.
As at end-2025, Seatrium’s net debt stood at S$680 million, slightly down from S$690 million previously. The net leverage ratio improved to 0.8 times, from 1.1 times in the prior year.
“We continue to broaden our funding sources and leverage our improved credit profile to secure favourable refinancing outcomes,” said Lu.
Pursuing diverse projects
Seatrium bagged more than S$4 billion in new orders last year, bringing its net order book to S$17.8 billion as at end-2025 – down from S$23.2 billion as at end-2024.
The orders comprise 24 projects with deliveries extending through to 2033, providing long-term revenue visibility. About 40 per cent of this net order book consists of renewables and cleaner or green solutions.
The company is also pursuing S$32 billion in deals over the next 24 months, involving oil and gas, offshore wind and conversion projects.
Seatrium sees strong opportunities in Brazil, where a long-term customer has disclosed its pipeline for the next five years. It is also pursuing potential projects for floating liquefied natural gas units and fixed platforms in the Middle East and Africa.
“We are also well positioned in Guyana for high-value integration work and topside fabrication,” said Ong at Thursday’s briefing.
For offshore wind, he noted that TenneT continues to be a key customer, as Seatrium pursues opportunities in the Netherlands and Germany.
Seatrium also wants to ride the clean energy wave, developing solutions for floating wind and other emerging energy sources, “to ensure we remain ahead of the curve,” said Ong.
The company also remains focused on optimising its cost structure through financial discipline and strategic divestments. It is making “clear progression” towards its FY2028 financial targets, said the chief executive.
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