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geographic Senior	11-Jul-2024 11:03        geographic About Contact  Quote this Post!
x 0   x 0  Alert Admin	He doesn' t even dare to commit a timeline. He has been at the helm for more than a year. The price of the share is at an all-time low. If without consolidation, it would be only $0.07.  He mentioned that the purpose of the consolidation was to ensure that " many potential shareholders are unable to participate in the share trading because of its speculative penny-stock status."     The share today after consolidation is still heavily shorted if not more than before.  Tob231      ( Date: 11-Jul-2024 10:51) Posted: Currently this counter is super super volality.
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SAVIORFOREVER Supreme	11-Jul-2024 10:55        SAVIORFOREVER About Contact  Quote this Post!
x 0   x 0  Alert Admin	Really need to see 170 in coming weeks. Trade with confidence building and DYODD
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Tob231 Elite	11-Jul-2024 10:55        Tob231 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Shortists are shelling heavily non-stop .... wonder what is going to counter their attacks
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ahbui8 Master	11-Jul-2024 10:53        ahbui8 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Wow my eye open big big when I saw " Today, we have $3 billion of cash in the balance sheet " FY23 result report 2B cash only, now become 3B!!! QueenMaya      ( Date: 11-Jul-2024 09:34) Posted: https://www.straitstimes.com/business/companies-markets/seatrium-chief-expects-tailwind-as-orders-flow-in-and-firm-starts-to-sail-into-profitability Seatrium chief expects tailwind as orders flow in and firm starts to sail into profitability SINGAPORE ? Would you invest in a company which has destroyed shareholder value via a series of dilutive capital raisings, makes huge losses, sits on a massive debt and is being investigated by regulators? That is a question I squarely put to Seatrium chief executive officer Chris Ong. His response was illuminating. ?Since the merger of SembCorp Marine and Keppel Offshore & Marine, Seatrium has focused on integration, launching our brand globally, executing the new strategy and, most importantly, securing the confidence of our customers,? he said. ?In just one year, we have shown stronger financial performance in FY2023, a threefold improvement in Ebitda (earnings before interest, taxes, depreciation and amortisation) versus FY2022, and went from net current liability of $1.45 billion during the first half of 2023 to net current asset position of $55 million by the end of FY2023. ?We have also grown our net orderbook to about $26 billion, with orders from the world?s largest oil and gas and renewable players.? In short, this very same company which has disappointed shareholders for more than five years is now turning around. Mr Ong, who took over the helm of the company after it was created last year, said Seatrium was doggedly clearing up ?legacy issues? left behind by a 10-year slump in the oil market. ?We still have our challenges, but we have a strong management and board that is focused on righting the ship, clearing the legacy issues and putting us on the path to profitability,? he said. ?Ultimately, we are committed to delivering our targets and creating long-term value for our shareholders.? Mr Ong, in an interview with The Straits Times on July 2, underscored that today?s Seatrium is a very different animal from its predecessors. ?The last boom in the 2000s was driven by a single product, which is oil,? he said. ?Today, we are a different company, dealing in multiple products and services, in multiple locations, horizontally and vertically integrated. We are no longer a single product company.? Indeed, Seatrium now operates across a spectrum of energy-related services, ranging from the construction and installation of offshore wind substations and turbines and electric offshore transmission system, to the construction of floating production storage and offloading (FPSO) vessels, ship construction, repairs, upgrades for LNG, and more. The oil and gas-related business still accounts for the lion?s share of contracts. ?Seatrium also operates very differently today. We no longer work in silos as individual yards, but under the One Seatrium global delivery model. This strategic move brings together our global assets and workforce into one, which will allow us to quickly scale our business for growth.? But Mr Ong conceded that after a decade of underperformance, there is a lot of scepticism in the market. ?We have to execute to get the margins,? he said, referring to the fact that profitability on many of its contracts are not what they should be. But he added that many of these thin-margin contracts were signed years ago, but are being replaced by newer contracts with fatter margins. His team has set ambitious targets for the company. This includes achieving Ebitda of more than $1 billion, return on assets of 8 per cent and gearing of less than two times by 2028. The company has also identified $300 million in annualised synergies and savings via standardised pricing with customers and reduction in overheads. It is also aiming for $200 million in procurement savings by managing a more efficient supply chain. ?Given where we have come from, these are lofty targets,? he said. ?But we are on a mission. Seatrium?s value is much higher than what is reflected in its stock price. This is a company with a rich 50-year history. But regaining our place under the sun is not a shot to the moon. It will take hard work. We mean business when we set a target for 2028.? One of the biggest concerns in the market now is a series of scandals related to oil contracts procured in Brazil via alleged inducements and bribes arising from a probe dubbed ?Operation Carwash? that began in 2014. The issue hit the headlines in June when the Monetary Authority of Singapore and the Commercial Affairs Department said they were conducting a joint investigation into offences potentially committed by SembCorp Marine and its officials. MORE ON THIS TOPIC Seatrium says asset-holding company to pay $77 million in settlement to Awilco unit Seatrium inks MOU with M1 to explore 5G connectivity in yards This comes just as investigations related to Operation Carwash seemed to be over, with additional financial penalties of US$110 million (S$148 million) imposed on Seatrium recently. ?The new investigation has brought back the fear and uncertainty that there could be further implications and have shaken investors and fund managers? confidence,? noted analyst Nicholas Yon of Lim & Tan Securities. But Mr Ong said these events happened years ago under a different corporation and culture. Seatrium is working with the investigators, he added. ?We will extend full transparency and put this behind us. All this happened a decade ago, and our job now is to provide all the information and help bring the investigations to a close.? He added that Seatrium?s global customers remained confident and know they are dealing with a world-class company, with new management, a good compliance system, and a focus on sustainability. It is also a much more financially stable company, he said. ?Following a capital structure review, we are now sitting on a net current asset position and have the confidence of our bankers. Today, we have $3 billion of cash in the balance sheet.? In late February, the company announced a 20-into-one share consolidation as well as a share buyback programme. At the time, Seatrium had an issued and paid-up share capital of $8.58 billion, comprising 68.2 billion outstanding shares on the market. The consolidation reduced this to 3.4 billion shares. But analysts wondered why this was being done after Seatrium reported a net loss of $1.7 billion for the second half of the year ended Dec 31, 2023, widening from a net loss of $118.3 million in the same period a year ago. The net loss for the full year stood at $1.9 billion, compared with the $261 million recorded in FY2022, largely due to non-cash write-downs, provisions for contracts, legal and corporate claims, as well as merger expenses which amounted to $2 billion for FY2023. Mr Ong is confident that the consolidation exercise will ?increase market interest and attractiveness? in the company?s shares, and said many potential shareholders are unable to participate in the share trading because of its speculative penny-stock status. A Keppel scholarship holder with a master?s degree in electrical engineering who started out as a supervisor at Keppel O&M some 25 years ago, Mr Ong said he also enjoys the support of a strong team at Seatrium. ?We are hitting our targets one item by one item, and seeing the improvement. The headwind of the last decade is now a tailwind, and we are capitalising on it.? He said that with Seatrium, Singapore has created a global champion in energy engineering, both in traditional and new energy. While traditional oil and gas remains the mainstay of contracts, and will remain so for a while, Seatrium expects up to 40 per cent of its contracts related to green and sustainable energy by 2030. Mr Yon of Lim & Tan believes the company is at an inflexion point. He said: ?Because of resurfacing investigations, investors have largely ignored the slew of positive news and contract wins that provides earnings visibility for Seatrium beyond FY2024. The dip in share price and latest share buybacks should lead investors to believe that this could be an opportunity to get into Seatrium. ?Seatrium is a laggard compared with most of Singapore?s oil and gas stocks which have moved due to the oil and gas supercycle.? Analysts expect the company to post earnings of about $200 million in FY2024, and $445 million in FY2025, according to Bloomberg forecasts But when will the company resume paying dividends? MORE ON THIS TOPIC Seatrium bags $11 billion in contracts from Petrobras to build FPSO vessels Rising tide for Seatrium lifts Singapore stocks marginally STI up 0.1% ?We want to pay dividends, and I understand shareholder frustration,? Mr Ong said. ?My message to shareholders is this: Give us time and you will be rewarded.? After drifitng southwards in recent months, the stock appears to have stabilised at around $1.40. According to Bloomberg data, analysts? consensus one-year target for Seatrium?s stock is $2.68, representing an upside of almost 90 per cent from current levels. All this would be music to the ears of long-suffering shareholders who have seen multiple stock dilutions diminish the value of their holdings, especially from the days when the company was once the mighty SembCorp Marine, with its shares trading at well over $3. wait4opp      ( Date: 11-Jul-2024 09:29) Posted: Seatrium signs Favoured Customer Contract with Teekay Shipping (Australia)
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Tob231 Elite	11-Jul-2024 10:51        Tob231 About Contact  Quote this Post!
x 0   x 0  Alert Admin	Currently this counter is super super volality.
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Tob231 Elite	11-Jul-2024 10:49        Tob231 About Contact  Quote this Post!
x 0   x 0  Alert Admin	There are many " scholars" . Importantly he works as a supervisor at Keppel O& M some 25 years ago, Mr Ong said he also enjoys the support of a strong team at Seatrium.  This counter is heavily speculated as what many have been shouting ....  Joyoftheworld      ( Date: 11-Jul-2024 10:09) Posted: I believe the dude that turned Dyna Mac around was also a Keppel scholar... geographic      ( Date: 11-Jul-2024 10:07) Posted: Maybe! Hopefully! Fingers crossed
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eugesun Elite	11-Jul-2024 10:41        eugesun About Contact  Quote this Post!
x 0   x 0  Alert Admin	Huat ahhh...BB drive price down to accumulate the shares and drive up when good news come... unlucky that not many people sell in these few weeks... 😆 Joyoftheworld      ( Date: 11-Jul-2024 10:34) Posted: Seems like my target for Shit5e2 of $500mil profit per year from repair and retrofit segment is inching closer by the day. War3craft2003      ( Date: 11-Jul-2024 10:29) Posted: https://www.seatrium.com/assets/releases/240711-Seatrium-secures-Favoured-Customer-Contract-agreement-from-Teekay-Shipping.pdf Seatrium Secures Favoured Customer Contract Agreement from Teekay Shipping (Australia) Pty Ltd Singapore, 11 July 2024 ? Seatrium Limited (Seatrium, or the Group) is pleased to announce that it has secured a Favoured Customer Contract agreement from Teekay Shipping (Australia) (Teekay), marking its first long-term strategic partnership agreement with a leading ship management company for the repairs and upgrades of a fleet of vessels under its Australia Defence Maritime Support Services Program (DMSSP). The contract, which includes the refit of a series of vessels over the next two years, will see Seatrium collaborating closely with Teekay in joint planning, information sharing, and leveraging mutual experience to facilitate the successful execution of these projects. The strategic partnership agreement was signed by Mr Tony Armstrong, Managing Director of Teekay Australia, and Mr Alvin Gan, Executive Vice President, Repairs and Upgrades, Seatrium. The two partners aim to leverage both companies? expertise to enhance service delivery, improve operational efficiency, achieve high Health, Safety and Environment (HSE) standards to meet the specialised needs of vessel maintenance.
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Joyoftheworld Master	11-Jul-2024 10:38        Joyoftheworld About Contact  Quote this Post!
x 0   x 0  Alert Admin	The other Keppel scholar managed to increase Dyna mac share price by 6 folds over 3 years. Trade Shit5e2 with expectation and hope.
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Joyoftheworld Master	11-Jul-2024 10:34        Joyoftheworld About Contact  Quote this Post!
x 0   x 0  Alert Admin	Seems like my target for Shit5e2 of $500mil profit per year from repair and retrofit segment is inching closer by the day. War3craft2003      ( Date: 11-Jul-2024 10:29) Posted: https://www.seatrium.com/assets/releases/240711-Seatrium-secures-Favoured-Customer-Contract-agreement-from-Teekay-Shipping.pdf Seatrium Secures Favoured Customer Contract Agreement from Teekay Shipping (Australia) Pty Ltd Singapore, 11 July 2024 ? Seatrium Limited (Seatrium, or the Group) is pleased to announce that it has secured a Favoured Customer Contract agreement from Teekay Shipping (Australia) (Teekay), marking its first long-term strategic partnership agreement with a leading ship management company for the repairs and upgrades of a fleet of vessels under its Australia Defence Maritime Support Services Program (DMSSP). The contract, which includes the refit of a series of vessels over the next two years, will see Seatrium collaborating closely with Teekay in joint planning, information sharing, and leveraging mutual experience to facilitate the successful execution of these projects. The strategic partnership agreement was signed by Mr Tony Armstrong, Managing Director of Teekay Australia, and Mr Alvin Gan, Executive Vice President, Repairs and Upgrades, Seatrium. The two partners aim to leverage both companies? expertise to enhance service delivery, improve operational efficiency, achieve high Health, Safety and Environment (HSE) standards to meet the specialised needs of vessel maintenance.
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War3craft2003 Member	11-Jul-2024 10:29        War3craft2003 About Contact  Quote this Post!
x 0   x 0  Alert Admin	https://www.seatrium.com/assets/releases/240711-Seatrium-secures-Favoured-Customer-Contract-agreement-from-Teekay-Shipping.pdf Seatrium Secures Favoured Customer Contract Agreement from Teekay Shipping (Australia) Pty Ltd Singapore, 11 July 2024 ? Seatrium Limited (Seatrium, or the Group) is pleased to announce that it has secured a Favoured Customer Contract agreement from Teekay Shipping (Australia) (Teekay), marking its first long-term strategic partnership agreement with a leading ship management company for the repairs and upgrades of a fleet of vessels under its Australia Defence Maritime Support Services Program (DMSSP). The contract, which includes the refit of a series of vessels over the next two years, will see Seatrium collaborating closely with Teekay in joint planning, information sharing, and leveraging mutual experience to facilitate the successful execution of these projects. The strategic partnership agreement was signed by Mr Tony Armstrong, Managing Director of Teekay Australia, and Mr Alvin Gan, Executive Vice President, Repairs and Upgrades, Seatrium. The two partners aim to leverage both companies? expertise to enhance service delivery, improve operational efficiency, achieve high Health, Safety and Environment (HSE) standards to meet the specialised needs of vessel maintenance.
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Joyoftheworld Master	11-Jul-2024 10:27        Joyoftheworld About Contact  Quote this Post!
x 0   x 0  Alert Admin	During cycle peak, he will be paid at least $12mil a year. geographic      ( Date: 11-Jul-2024 10:13) Posted: If he is so confident, he should lead by example to buy up sales of Seatrium from his pocket like what the CEOs of other companies are doing. This guy' s pay is almost 2 million a year.  Joyoftheworld      ( Date: 11-Jul-2024 09:54) Posted: Wow, CEO Chris Ong is cool as a cucumber. Profit and Dividend soon.
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geographic Senior	11-Jul-2024 10:13        geographic About Contact  Quote this Post!
x 0   x 0  Alert Admin	If he is so confident, he should lead by example to buy up sales of Seatrium from his pocket like what the CEOs of other companies are doing. This guy' s pay is almost 2 million a year.  Joyoftheworld      ( Date: 11-Jul-2024 09:54) Posted: Wow, CEO Chris Ong is cool as a cucumber. Profit and Dividend soon.
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Joyoftheworld Master	11-Jul-2024 10:09        Joyoftheworld About Contact  Quote this Post!
x 0   x 0  Alert Admin	I believe the dude that turned Dyna Mac around was also a Keppel scholar... geographic      ( Date: 11-Jul-2024 10:07) Posted: Maybe! Hopefully! Fingers crossed. CheongArgh      ( Date: 11-Jul-2024 10:02) Posted: Yes, just give them time n you will be rewarded, reassured Chris Ong $2.50 maybe by next year, plus dividend ?
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geographic Senior	11-Jul-2024 10:07        geographic About Contact  Quote this Post!
x 0   x 0  Alert Admin	Maybe! Hopefully! Fingers crossed. CheongArgh      ( Date: 11-Jul-2024 10:02) Posted: Yes, just give them time n you will be rewarded, reassured Chris Ong $2.50 maybe by next year, plus dividend ?   Joyoftheworld      ( Date: 11-Jul-2024 09:54) Posted: Wow, CEO Chris Ong is cool as a cucumber. Profit and Dividend soon.
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CheongArgh Master	11-Jul-2024 10:02        CheongArgh About Contact  Quote this Post! Style: Flexible   Mood:
x 0   x 0  Alert Admin	Yes, just give them time n you will be rewarded, reassured Chris Ong $2.50 maybe by next year, plus dividend ?   Joyoftheworld      ( Date: 11-Jul-2024 09:54) Posted: Wow, CEO Chris Ong is cool as a cucumber. Profit and Dividend soon.
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WILLIAM.D Member	11-Jul-2024 10:00        WILLIAM.D About Contact  Quote this Post!
x 0   x 0  Alert Admin	They are doing in correct way.. Confidence is critical..  QueenMaya      ( Date: 11-Jul-2024 09:34) Posted: https://www.straitstimes.com/business/companies-markets/seatrium-chief-expects-tailwind-as-orders-flow-in-and-firm-starts-to-sail-into-profitability Seatrium chief expects tailwind as orders flow in and firm starts to sail into profitability SINGAPORE ? Would you invest in a company which has destroyed shareholder value via a series of dilutive capital raisings, makes huge losses, sits on a massive debt and is being investigated by regulators? That is a question I squarely put to Seatrium chief executive officer Chris Ong. His response was illuminating. ?Since the merger of SembCorp Marine and Keppel Offshore & Marine, Seatrium has focused on integration, launching our brand globally, executing the new strategy and, most importantly, securing the confidence of our customers,? he said. ?In just one year, we have shown stronger financial performance in FY2023, a threefold improvement in Ebitda (earnings before interest, taxes, depreciation and amortisation) versus FY2022, and went from net current liability of $1.45 billion during the first half of 2023 to net current asset position of $55 million by the end of FY2023. ?We have also grown our net orderbook to about $26 billion, with orders from the world?s largest oil and gas and renewable players.? In short, this very same company which has disappointed shareholders for more than five years is now turning around. Mr Ong, who took over the helm of the company after it was created last year, said Seatrium was doggedly clearing up ?legacy issues? left behind by a 10-year slump in the oil market. ?We still have our challenges, but we have a strong management and board that is focused on righting the ship, clearing the legacy issues and putting us on the path to profitability,? he said. ?Ultimately, we are committed to delivering our targets and creating long-term value for our shareholders.? Mr Ong, in an interview with The Straits Times on July 2, underscored that today?s Seatrium is a very different animal from its predecessors. ?The last boom in the 2000s was driven by a single product, which is oil,? he said. ?Today, we are a different company, dealing in multiple products and services, in multiple locations, horizontally and vertically integrated. We are no longer a single product company.? Indeed, Seatrium now operates across a spectrum of energy-related services, ranging from the construction and installation of offshore wind substations and turbines and electric offshore transmission system, to the construction of floating production storage and offloading (FPSO) vessels, ship construction, repairs, upgrades for LNG, and more. The oil and gas-related business still accounts for the lion?s share of contracts. ?Seatrium also operates very differently today. We no longer work in silos as individual yards, but under the One Seatrium global delivery model. This strategic move brings together our global assets and workforce into one, which will allow us to quickly scale our business for growth.? But Mr Ong conceded that after a decade of underperformance, there is a lot of scepticism in the market. ?We have to execute to get the margins,? he said, referring to the fact that profitability on many of its contracts are not what they should be. But he added that many of these thin-margin contracts were signed years ago, but are being replaced by newer contracts with fatter margins. His team has set ambitious targets for the company. This includes achieving Ebitda of more than $1 billion, return on assets of 8 per cent and gearing of less than two times by 2028. The company has also identified $300 million in annualised synergies and savings via standardised pricing with customers and reduction in overheads. It is also aiming for $200 million in procurement savings by managing a more efficient supply chain. ?Given where we have come from, these are lofty targets,? he said. ?But we are on a mission. Seatrium?s value is much higher than what is reflected in its stock price. This is a company with a rich 50-year history. But regaining our place under the sun is not a shot to the moon. It will take hard work. We mean business when we set a target for 2028.? One of the biggest concerns in the market now is a series of scandals related to oil contracts procured in Brazil via alleged inducements and bribes arising from a probe dubbed ?Operation Carwash? that began in 2014. The issue hit the headlines in June when the Monetary Authority of Singapore and the Commercial Affairs Department said they were conducting a joint investigation into offences potentially committed by SembCorp Marine and its officials. MORE ON THIS TOPIC Seatrium says asset-holding company to pay $77 million in settlement to Awilco unit Seatrium inks MOU with M1 to explore 5G connectivity in yards This comes just as investigations related to Operation Carwash seemed to be over, with additional financial penalties of US$110 million (S$148 million) imposed on Seatrium recently. ?The new investigation has brought back the fear and uncertainty that there could be further implications and have shaken investors and fund managers? confidence,? noted analyst Nicholas Yon of Lim & Tan Securities. But Mr Ong said these events happened years ago under a different corporation and culture. Seatrium is working with the investigators, he added. ?We will extend full transparency and put this behind us. All this happened a decade ago, and our job now is to provide all the information and help bring the investigations to a close.? He added that Seatrium?s global customers remained confident and know they are dealing with a world-class company, with new management, a good compliance system, and a focus on sustainability. It is also a much more financially stable company, he said. ?Following a capital structure review, we are now sitting on a net current asset position and have the confidence of our bankers. Today, we have $3 billion of cash in the balance sheet.? In late February, the company announced a 20-into-one share consolidation as well as a share buyback programme. At the time, Seatrium had an issued and paid-up share capital of $8.58 billion, comprising 68.2 billion outstanding shares on the market. The consolidation reduced this to 3.4 billion shares. But analysts wondered why this was being done after Seatrium reported a net loss of $1.7 billion for the second half of the year ended Dec 31, 2023, widening from a net loss of $118.3 million in the same period a year ago. The net loss for the full year stood at $1.9 billion, compared with the $261 million recorded in FY2022, largely due to non-cash write-downs, provisions for contracts, legal and corporate claims, as well as merger expenses which amounted to $2 billion for FY2023. Mr Ong is confident that the consolidation exercise will ?increase market interest and attractiveness? in the company?s shares, and said many potential shareholders are unable to participate in the share trading because of its speculative penny-stock status. A Keppel scholarship holder with a master?s degree in electrical engineering who started out as a supervisor at Keppel O&M some 25 years ago, Mr Ong said he also enjoys the support of a strong team at Seatrium. ?We are hitting our targets one item by one item, and seeing the improvement. The headwind of the last decade is now a tailwind, and we are capitalising on it.? He said that with Seatrium, Singapore has created a global champion in energy engineering, both in traditional and new energy. While traditional oil and gas remains the mainstay of contracts, and will remain so for a while, Seatrium expects up to 40 per cent of its contracts related to green and sustainable energy by 2030. Mr Yon of Lim & Tan believes the company is at an inflexion point. He said: ?Because of resurfacing investigations, investors have largely ignored the slew of positive news and contract wins that provides earnings visibility for Seatrium beyond FY2024. The dip in share price and latest share buybacks should lead investors to believe that this could be an opportunity to get into Seatrium. ?Seatrium is a laggard compared with most of Singapore?s oil and gas stocks which have moved due to the oil and gas supercycle.? Analysts expect the company to post earnings of about $200 million in FY2024, and $445 million in FY2025, according to Bloomberg forecasts But when will the company resume paying dividends? MORE ON THIS TOPIC Seatrium bags $11 billion in contracts from Petrobras to build FPSO vessels Rising tide for Seatrium lifts Singapore stocks marginally STI up 0.1% ?We want to pay dividends, and I understand shareholder frustration,? Mr Ong said. ?My message to shareholders is this: Give us time and you will be rewarded.? After drifitng southwards in recent months, the stock appears to have stabilised at around $1.40. According to Bloomberg data, analysts? consensus one-year target for Seatrium?s stock is $2.68, representing an upside of almost 90 per cent from current levels. All this would be music to the ears of long-suffering shareholders who have seen multiple stock dilutions diminish the value of their holdings, especially from the days when the company was once the mighty SembCorp Marine, with its shares trading at well over $3. wait4opp      ( Date: 11-Jul-2024 09:29) Posted: Seatrium signs Favoured Customer Contract with Teekay Shipping (Australia)
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SAVIORFOREVER Supreme	11-Jul-2024 10:00        SAVIORFOREVER About Contact  Quote this Post!
x 0   x 0  Alert Admin	If he buys more of Seatrium now then that would really help. Must show something. Trade with confidence and DYODD Joyoftheworld      ( Date: 11-Jul-2024 09:54) Posted: Wow, CEO Chris Ong is cool as a cucumber. Profit and Dividend soon.
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Joyoftheworld Master	11-Jul-2024 09:54        Joyoftheworld About Contact  Quote this Post!
x 0   x 0  Alert Admin	Wow, CEO Chris Ong is cool as a cucumber. Profit and Dividend soon.
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QueenMaya Senior	11-Jul-2024 09:34        QueenMaya About Contact  Quote this Post!
x 0   x 0  Alert Admin	https://www.straitstimes.com/business/companies-markets/seatrium-chief-expects-tailwind-as-orders-flow-in-and-firm-starts-to-sail-into-profitability Seatrium chief expects tailwind as orders flow in and firm starts to sail into profitability SINGAPORE ? Would you invest in a company which has destroyed shareholder value via a series of dilutive capital raisings, makes huge losses, sits on a massive debt and is being investigated by regulators? That is a question I squarely put to Seatrium chief executive officer Chris Ong. His response was illuminating. ?Since the merger of SembCorp Marine and Keppel Offshore & Marine, Seatrium has focused on integration, launching our brand globally, executing the new strategy and, most importantly, securing the confidence of our customers,? he said. ?In just one year, we have shown stronger financial performance in FY2023, a threefold improvement in Ebitda (earnings before interest, taxes, depreciation and amortisation) versus FY2022, and went from net current liability of $1.45 billion during the first half of 2023 to net current asset position of $55 million by the end of FY2023. ?We have also grown our net orderbook to about $26 billion, with orders from the world?s largest oil and gas and renewable players.? In short, this very same company which has disappointed shareholders for more than five years is now turning around. Mr Ong, who took over the helm of the company after it was created last year, said Seatrium was doggedly clearing up ?legacy issues? left behind by a 10-year slump in the oil market. ?We still have our challenges, but we have a strong management and board that is focused on righting the ship, clearing the legacy issues and putting us on the path to profitability,? he said. ?Ultimately, we are committed to delivering our targets and creating long-term value for our shareholders.? Mr Ong, in an interview with The Straits Times on July 2, underscored that today?s Seatrium is a very different animal from its predecessors. ?The last boom in the 2000s was driven by a single product, which is oil,? he said. ?Today, we are a different company, dealing in multiple products and services, in multiple locations, horizontally and vertically integrated. We are no longer a single product company.? Indeed, Seatrium now operates across a spectrum of energy-related services, ranging from the construction and installation of offshore wind substations and turbines and electric offshore transmission system, to the construction of floating production storage and offloading (FPSO) vessels, ship construction, repairs, upgrades for LNG, and more. The oil and gas-related business still accounts for the lion?s share of contracts. ?Seatrium also operates very differently today. We no longer work in silos as individual yards, but under the One Seatrium global delivery model. This strategic move brings together our global assets and workforce into one, which will allow us to quickly scale our business for growth.? But Mr Ong conceded that after a decade of underperformance, there is a lot of scepticism in the market. ?We have to execute to get the margins,? he said, referring to the fact that profitability on many of its contracts are not what they should be. But he added that many of these thin-margin contracts were signed years ago, but are being replaced by newer contracts with fatter margins. His team has set ambitious targets for the company. This includes achieving Ebitda of more than $1 billion, return on assets of 8 per cent and gearing of less than two times by 2028. The company has also identified $300 million in annualised synergies and savings via standardised pricing with customers and reduction in overheads. It is also aiming for $200 million in procurement savings by managing a more efficient supply chain. ?Given where we have come from, these are lofty targets,? he said. ?But we are on a mission. Seatrium?s value is much higher than what is reflected in its stock price. This is a company with a rich 50-year history. But regaining our place under the sun is not a shot to the moon. It will take hard work. We mean business when we set a target for 2028.? One of the biggest concerns in the market now is a series of scandals related to oil contracts procured in Brazil via alleged inducements and bribes arising from a probe dubbed ?Operation Carwash? that began in 2014. The issue hit the headlines in June when the Monetary Authority of Singapore and the Commercial Affairs Department said they were conducting a joint investigation into offences potentially committed by SembCorp Marine and its officials. MORE ON THIS TOPIC Seatrium says asset-holding company to pay $77 million in settlement to Awilco unit Seatrium inks MOU with M1 to explore 5G connectivity in yards This comes just as investigations related to Operation Carwash seemed to be over, with additional financial penalties of US$110 million (S$148 million) imposed on Seatrium recently. ?The new investigation has brought back the fear and uncertainty that there could be further implications and have shaken investors and fund managers? confidence,? noted analyst Nicholas Yon of Lim & Tan Securities. But Mr Ong said these events happened years ago under a different corporation and culture. Seatrium is working with the investigators, he added. ?We will extend full transparency and put this behind us. All this happened a decade ago, and our job now is to provide all the information and help bring the investigations to a close.? He added that Seatrium?s global customers remained confident and know they are dealing with a world-class company, with new management, a good compliance system, and a focus on sustainability. It is also a much more financially stable company, he said. ?Following a capital structure review, we are now sitting on a net current asset position and have the confidence of our bankers. Today, we have $3 billion of cash in the balance sheet.? In late February, the company announced a 20-into-one share consolidation as well as a share buyback programme. At the time, Seatrium had an issued and paid-up share capital of $8.58 billion, comprising 68.2 billion outstanding shares on the market. The consolidation reduced this to 3.4 billion shares. But analysts wondered why this was being done after Seatrium reported a net loss of $1.7 billion for the second half of the year ended Dec 31, 2023, widening from a net loss of $118.3 million in the same period a year ago. The net loss for the full year stood at $1.9 billion, compared with the $261 million recorded in FY2022, largely due to non-cash write-downs, provisions for contracts, legal and corporate claims, as well as merger expenses which amounted to $2 billion for FY2023. Mr Ong is confident that the consolidation exercise will ?increase market interest and attractiveness? in the company?s shares, and said many potential shareholders are unable to participate in the share trading because of its speculative penny-stock status. A Keppel scholarship holder with a master?s degree in electrical engineering who started out as a supervisor at Keppel O&M some 25 years ago, Mr Ong said he also enjoys the support of a strong team at Seatrium. ?We are hitting our targets one item by one item, and seeing the improvement. The headwind of the last decade is now a tailwind, and we are capitalising on it.? He said that with Seatrium, Singapore has created a global champion in energy engineering, both in traditional and new energy. While traditional oil and gas remains the mainstay of contracts, and will remain so for a while, Seatrium expects up to 40 per cent of its contracts related to green and sustainable energy by 2030. Mr Yon of Lim & Tan believes the company is at an inflexion point. He said: ?Because of resurfacing investigations, investors have largely ignored the slew of positive news and contract wins that provides earnings visibility for Seatrium beyond FY2024. The dip in share price and latest share buybacks should lead investors to believe that this could be an opportunity to get into Seatrium. ?Seatrium is a laggard compared with most of Singapore?s oil and gas stocks which have moved due to the oil and gas supercycle.? Analysts expect the company to post earnings of about $200 million in FY2024, and $445 million in FY2025, according to Bloomberg forecasts But when will the company resume paying dividends? MORE ON THIS TOPIC Seatrium bags $11 billion in contracts from Petrobras to build FPSO vessels Rising tide for Seatrium lifts Singapore stocks marginally STI up 0.1% ?We want to pay dividends, and I understand shareholder frustration,? Mr Ong said. ?My message to shareholders is this: Give us time and you will be rewarded.? After drifitng southwards in recent months, the stock appears to have stabilised at around $1.40. According to Bloomberg data, analysts? consensus one-year target for Seatrium?s stock is $2.68, representing an upside of almost 90 per cent from current levels. All this would be music to the ears of long-suffering shareholders who have seen multiple stock dilutions diminish the value of their holdings, especially from the days when the company was once the mighty SembCorp Marine, with its shares trading at well over $3. wait4opp      ( Date: 11-Jul-2024 09:29) Posted: Seatrium signs Favoured Customer Contract with Teekay Shipping (Australia) wait4opp      ( Date: 11-Jul-2024 09:22) Posted: https://www.theedgesingapore.com/news/deals-joint-ventures-alliances/seatrium-signs-favoured-customer-contract-teekay-shipping
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x 0   x 0  Alert Admin	Seatrium signs Favoured Customer Contract with Teekay Shipping (Australia) wait4opp      ( Date: 11-Jul-2024 09:22) Posted: https://www.theedgesingapore.com/news/deals-joint-ventures-alliances/seatrium-signs-favoured-customer-contract-teekay-shipping
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