Seatrium shares rise 5.6% after positive profit guidance

[SINGAPORE] Shares of Seatrium rose as much as 5.6 per cent 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$0.12 to an intra-day high of S$2.25, adding about S$400 million to Seatrium’s market capitalisation.

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.

Citi 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 that 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.

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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 the second half of 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.