On its return to profitability, the company proposes a final dividend of S$0.015 a share

 

SEATRIUM : 5E2 -4.8% swung into the black with a net profit of S$120.9 million for the second half ended Dec 31, from a net loss of S$1.8 billion in the same period a year earlier.

 

Together with a H1 turnaround, the offshore and marine specialist marked its first full-year profit since its birth in 2023.

 

The H2 earnings were attributed to higher contributions from revenue recognition, fair-value gain on investments, as well as share of profit from associates, the group said on Friday (Feb 21).

 

Earnings per share (EPS) for the period stood at S$0.0356, compared with a loss per share (LPS) of S$0.5137 in the year-ago period.

 

With the completion of the share consolidation of every 20 existing shares into one consolidated share on May 9 last year, prior-year comparatives for EPS were restated accordingly.

 

On its return to profitability, Seatrium has proposed a final dividend of S$0.015 per share. It will be paid on May 19, after the record date of May 7.

 

Revenue for the half year rose 18.4 per cent to S$5.2 billion from S$4.4 billion on execution of a larger order book.

 

Adrian Teng, Seatrium&rsquo s chief financial officer said: &ldquo Second-half revenue was mainly from the six FPSO projects for Petrobras, the three 2GW HVDC offshore converter platform projects for TenneT, and increased contribution from repairs and upgrades.&rdquo

 

For the financial year 2024, the group recorded a net profit of S$156.8 million, from a loss of S$2 billion for FY2023.

 

EPS stood at S$0.0461, compared with an LPS of S$0.6477 in the prior year.

 

Revenue for the year rose 26.6 per cent to S$9.2 billion from S$7.3 billion, due to stronger project execution of a growing order book and higher-value work in repairs and upgrades, noted Teng.

 

In FY2024, Seatrium secured order wins worth S$15.2 billion. It delivered seven projects and completed 231 in the repairs and upgrades segment.

 

&ldquo In the year to date 2025, our net order book stood at S$23.2 billion, up from S$16.2 billion in the previous period. Our order book comprises 27 projects with deliveries till 2031, giving us revenue visibility and a good foundation for the years ahead,&rdquo Teng added.

 

He also highlighted Seatrium&rsquo s capital management with active loan repayment and refinancing efforts.

 

As at end-2024, Seatrium&rsquo s net debt stood at S$689 million, an 8 per cent reduction from last year&rsquo s S$747 million. Net leverage ratio as at end-December declined to 1.1 times from 3.2 times in the prior year.

 

Outlook

Chief executive officer Chris Ong said that despite near-term geopolitical risks, the need to address energy security while transitioning towards cleaner energy globally presents significant market opportunities.

 

&ldquo Our focus on oil and gas and renewables solutions, as well as maritime upgrades, positions us favourably to capitalise on the energy market tailwinds.&rdquo

 

Amid tariff uncertainty, he highlighted the importance of choosing a strategic location for component construction. &ldquo I think integration in Singapore is a very powerful tool for a lot of our customers,&rdquo he added.

 

He added that while companies cannot control geopolitical situations, Seatrium is focusing on fundamentals, building capabilities and maintaining customers&rsquo trust.

 

Looking ahead, it aims to continue seeking &ldquo profitable growth&rdquo in oil and gas, offshore wind, repairs and upgrades, as well as new energies.

 

&ldquo With a strong order win momentum in FY2024, the group will stay focused on executing its robust order book, which underpins revenue and cash flow visibility over the next few years,&rdquo said Ong.