We believe Seatrium will be able to achieve its target S$1bn EBITDA in FY26F, two years ahead of its scheduled target date of FY28F.
Setting financial targets for the first time
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ROE of at least 8%;
net debt/EBITDA of 2-3x;
revenue of S$10bn-12bn;
S$300m in annualised synergies and cost savings (to be achieved by end-FY25F);
S$200m in procurement savings achieved, with the merger boosting project margins.
Equal cost savings via standardised pricing, SG&A, depreciation
Seatrium expects its S$300m cost optimisation target to be equally shared (~S$100m each) between
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reduction in corporate SG&A by the removal of duplication processes; and
depreciation from asset rationalisation or yard closures.
Seatrium expects the cost savings to be fully reflected from FY26F.
Can Seatrium achieve EBITDA of at least S$1bn before FY28F?
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Above is an excerpt from a research report by CGSI Research. Clients of CGS International may access the full PDF report @ https://itrade.cgsi.com.sg/.