Seatrium - OCBC Investment 2024-02-27: Focus On Delivering Improved Financial Performance In FY24

Seatrium - Focus On Delivering Improved Financial Performance In FY24

Seatrium (SGX:S51) | SGinvestors.ioSeatrium (SGX:S51)
  • Seatrium (SGX:S51) reported a three-fold increase in revenue from S$1.9b in FY22 to S$7.3b in FY23. This was largely attributed to its strong project execution, as the group successfully delivered 13 key projects in FY23 and 2024 year-to-date.
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  • Meanwhile, underlying EBITDA surged 456% from S$113m in FY22 to S$628m in FY23.

FY23 net loss of S$1.9b underpinned by kitchen sinking of S$2b

  • Overall net loss widened from S$261m in FY22 to S$1.9b in FY23, largely due to non-cash write-downs (mainly related to yard and yard assets), which amounted to S$1.4b.
  • On top of that, Seatrium also recorded S$0.6b worth of provisions for onerous contracts, legal and corporate claims, and merger expenses.
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FY24 could be a better year

  • FY24 could be a better year as Seatrium ramps up on projects, given its healthy net order book and a positive industry outlook
  • With the successful completion of the group’s integration and strategic review, Seatrium’s focus will be on improving financial performance in FY24 through quality, safety, and timely project deliveries.
  • Seatrium has achieved strong order wins of S$4.5b in FY23 and year-to-date in 2024, including two 2-gigawatt HVDC Offshore Converter Platforms from TenneT and Sparta Floating Production Unit (FPU) from Shell; as well as a Favoured Customer Contract (FCC) with TMS Cardiff Gas for the refit of 17 liquefied natural gas (LNG) carriers in Singapore.
  • Seatrium’s net order book stood at S$16.2b as at 31 Dec 2023, comprising ~39% renewables and cleaner/green solutions, and management is positive on the outlook for the offshore & marine (O&M) industry.

~S$182.4m settlement payment in relation to Operation Car Wash

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Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @

OCBC Research Team OCBC Investment Research | 2024-02-27

Read also OCBC's most recent report:
2024-04-01 Seatrium - Leaving The Past Behind.

Previous report by OCBC:
2024-03-18 Seatrium Investor Day 2024 - Diversified, Resilient & Profitable.

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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