Seatrium - DBS Research 2023-07-31: Charting A Return To Profitability

• Seatrium (SGX:S51)'s 1H23 core operating results seem rather encouraging with net loss before provisions at S$33m, better than ours and market expectations of over S$50m.
• EBITDA has turned positive at S$258m, a strong reversion from breakeven last year, partly aided by claims for cost incurred relating to rigs sold to AssetCo. We understand the claims would be operating income and relate to from modification or maintenance works done for the AssetCo rigs.

Provision for contracts & merger expenses amounted to ~ S$231m

• - Read this at SGinvestors.io -
• We believe these are isolated cases and Seatrium remains well on a recovery track. We have widened our FY23 net loss projection to S$254m, to account for the provisions in 1H, factoring in a small profit in 2H23.
• - Read this at SGinvestors.io -

Slowly but surely; catalysts ahead.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2024-03-18 Seatrium - Stronger Than Ever.

Previous report by DBS:
2024-02-27 Seatrium - Despite Write-Downs, Do Not Write-Off.

Price targets by other brokers at Seatrium Target Prices.

Listing of research reports at Seatrium Analyst Reports.

Relevant links:
Seatrium Share Price History,
Seatrium Announcements,
Seatrium Dividend Payout Dates & Corporate Actions,
Seatrium News