- Seatrium (SGX:S51) reported a net loss of S$1.7bn for 2H23, bringing its full-year loss to S$1.94bn. This is much higher than the expectation of a S$500- 600m net loss for FY23 due to massive non-cash write-downs of S$1.4bn for non-core assets and obsolete inventories arising from a strategic review; and S$0.6bn in provisions for onerous contracts, legal and corporate claims (largely the Brazil in-principle settlement), and merger-related expenses.
But encouraging operating performance with interim profitfor the first time since 2018
- - Read this at SGinvestors.io -
Any further provision and impairment risks?
- - Read this at SGinvestors.io -
Slowly but surely; bottoming out from here
- 2023 is a transition year for Seatrium. Tremendous improvement in operations has been achieved this year, delivering over 50% y-o-y growth from FY22 combined revenue and strong positive EBITDA of S$628m.
- A more prominent earnings turnaround could be expected from 2024 onwards, with integration synergies and improved productivity.
Order wins of ~S$4.5bn in FY23, resulting in net orderbook of S$16.2bn.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Pei Hwa HO DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-02-27
Read also DBS's most recent report:
2024-03-18 Seatrium - Stronger Than Ever.
Price targets by 4 other brokers at Seatrium Target Prices.
Listing of research reports at Seatrium Analyst Reports.
Relevant links:
Seatrium Share Price History,
Seatrium Announcements,
Seatrium Dividends & Corporate Actions,
Seatrium News Articles
