Seatrium shares close 8.9% higher after positive profit guidance
Company says it expects to report ‘material year-on-year improvement in net profit’ for H1
Add BT as a preferred source
[SINGAPORE] Shares of Seatrium closed 8.9 per cent higher on Monday (Jul 27) after the marine and offshore specialist issued a positive profit guidance on Friday for its first-half results.
The counter rose S$0.19 or 8.9 per cent to close at S$2.32.
Seatrium on Friday said it expects to report a “material year-on-year improvement in net profit”, mainly attributable to divestment gains and progressive margin improvements.
The company will report its results on Jul 31.
Citigroup analyst Luis Hilado on Monday noted that the messaging was similar to prior 2026 fiscal year management guidance in the company’s first-quarter business update in May.
Then, Seatrium had said it was focused on optimising its “cost structure through financial discipline and strategic divestments”.
It had also said it was “well positioned” to deliver further gross margin improvements after completing previously announced divestments.
Seatrium had reported that its gross margin had continued to strengthen due to an improved project mix, while the completed divestments partly contributed to lower overheads.
“We believe the purpose (of the profit guidance) could be to address that Bloomberg consensus estimates currently have a small gap between reported profit and adjusted profit,” said Hilado.
Citi added that it estimated a 2026 reported profit and adjusted profit of S$626 million and S$502 million, respectively, while the Bloomberg consensus was at S$472 million and S$498 million.
“On a gross basis, we estimate Seatrium is likely to book S$155 million gains from the sale of its tugboat fleet, floating dock, Karimun Yard disposal and Crescent Yard disposal, all in H1,” said the note.
Seatrium reported on Feb 28 that its profit for H2 2025 was up 48.3 per cent to S$179.3 million. 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.
The company in May had also announced that it was eyeing more than S$28 billion in project opportunities over the next two years as the Middle East conflict escalates a global race for energy.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
