Seatrium - UOB Kay Hian 2023-07-31: Look Beyond 2023's Loss To Strong Recovery In EBITDA

• While Seatrium (SGX:S51) reported a loss for 1H23 due to provisions, we note its strong EBITDA recovery since 1H22, and it is well placed to continue on this track given its S$19.7b net orderbook. Balance sheet remains strong with net debt to equity of 0.17 as at end-1H23.
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Significant revenue growth in 1H23.

• Seatrium announced that its revenue for 1H23 had jumped 164% y-o-y to S$2.9b on the back of its larger orderbook after the merger with Keppel Offshore Marine (KOM). Its 1H23 revenue made up 63% of our full-year forecast.
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• At the bottom line however, Seatrium reported a net loss of S$264m due to provisions for two projects in the US as well as professional fees related to its merger.

Guiding for a loss in 2023.

• Read more at SGinvestors.io.

Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.

Read also UOB's most recent report:
2024-03-18 Seatrium - No Surprises At Its Inaugural Investor Day.

Previous report by UOB:
2024-02-28 Seatrium - 2023 Underying EBITDA & Profit Are Encouraging.

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