Seatrium is Back in the Black
Seatrium Limited returned to profitability in the half year ended 2024, the first time since its formation in 2023.
Seatrium recorded a revenue of S$4.0 billion for 1H2024, a notable 39% growth from S$2.9 billion for 1H2023, mainly due to progressive revenue recognition from newbuild projects and increased repairs and upgrades activities.
The Group’s underlying performance also improved. Seatrium’s underlying EBITDA was S$390 million for 1H2024, excluding the one-off provision of S$79 million for the full and final settlement to MH Wirth. This was an improvement from 1H2023’s EBITDA of S$36 million and was backed by improved margins and lower overheads.
Reflecting the increased activity and continued project execution, underlying net profit for 1H2024 was S$115 million, reversing from a net loss of S$264 million for 1H2023.
Chris Ong, CEO of Seatrium, said, "We are pleased to deliver a stronger set of financial results, achieving profitability in 1H2024. The team has been working hard as One Seatrium, prioritizing integration, project execution and operational efficiency. We are achieving synergies and making good progress in our transformation journey.
“As we work towards our 2028 targets, we will continue to grow our order book, build a leaner cost structure and execute our projects well. Through these, we are building a sustainably profitable and resilient business, and creating value for all stakeholders.”
Ong also said: “H2024 was a busy, fruitful first half for Seatrium. We clinched several prized contracts to value add to our portfolio of projects, including the much-anticipated newbuild FPSO platforms P-84 and P-85 for Petrobras and the third 2GW HVDC Offshore Converter Platform for TenneT, as well as a number of Repairs and Upgrades projects worth over half a billion to date.
“We have also successfully completed our share consolidation exercise in May, and embarked on our inaugural S$100 million share buyback programme. At our Investor Day held earlier in March, we have laid out our longer-term strategy and 2028 financial targets, providing clarity on how the Group intends to leverage the strong industry tailwinds to chart our transformation journey from here.”
In 1H2024, the Group secured order wins of S$13.4 billion. Seatrium’s net order book stood at S$26.1 billion as at 30 June 2024. This represents a 61% increase from end-2023 and is the highest net order book in a decade. About S$9.3 billion (35%) of the net order book are renewables and cleaner/green solutions, an increase from S$6.3 billion as at end-2023.
Seatrium secured a series of major Repairs & Upgrades contracts, including the world’s first full-scale, turnkey carbon capture and storage (CCS) retrofit from Solvang ASA. In the year to date, the Group has signed five other favored customer contracts (FCCs) with shipowners to service their vessels over the next few years.
During the first half of 2024, Seatrium continued to focus on the execution of the projects in its order book and improve on operational efficiencies. The Group delivered Singapore’s first newbuild Membrane LNG Bunker Vessel, Brassavola, and completed 133 Repairs & Upgrades projects.
To lay the foundation for growth, the Group secured a S$1.1 billion syndicated bank guarantee facility in July 2024 to support future project needs.
Bolstering its access to alternative financing and commitment to sustainability, Seatrium also obtained a S$400 million committed green revolving loan facility from UOB to support environmentally sustainable projects.
Although macroeconomic and geopolitical uncertainties persist, the outlook for the offshore and marine industry remains positive, says Seatrium, supported by broad-based demand across both the oil & gas and renewables sectors.