Seatrium’s profit warning has a silver lining
Investors should be wary of a business that Sembcorp and Keppel both wanted to exit; much depends on whether Seatrium delivers a consistently healthy level of earnings
PROFIT warnings are never good news for investors. Yet, there is a positive aspect to Seatrium’s announcement last week that it will report a significantly higher loss for 2023 than the previous year.
In the first place, the loss that Seatrium reported for 2022 was not all that high at S$261.1 million. Seatrium reported a much higher loss of S$1.17 billion for 2021.
It was also not unexpected that Seatrium would suffer a larger loss in 2023. The company reported a net loss for H1 2023 of S$264.4 million, which was already slightly higher than the full-year 2022 loss.
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