Seatrium - DBS Research 2024-02-27: Despite Write-Downs, Do Not Write-Off

Seatrium - Despite Write-Downs, Do Not Write-Off

Seatrium (SGX:S51) | SGinvestors.ioSeatrium (SGX:S51)
  • 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 -

Any further provision and impairment risks?

  • - Read this at -

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.

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Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @

Pei Hwa HO DBS Group Research | 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


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