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 an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
