Seatrium recorded a net profit attributable to shareholders of $35.97 million in 1HFY2024 for the six months to end-June, reversing a loss of $264.4 million in 1HFY2023. According to an Aug 2 announcement, the underlying net profit in 1HFY2024 was $115 million. The underlying excludes the one-off provision for the settlement to MH Wirth of $79 million.
Seatrium recorded a revenue of $4.0 billion for 1HFY2024, up 39% y-o-y, mainly due to progressive revenue recognition from newbuild projects and increased repairs & upgrades activities. Seatrium’s underlying Ebitda was $390 million for 1HFY2024, excluding the one-off provision of $79 million compared to 1HFY2023’s Ebitda of $36 million as margins improved.
In 1HFY2024, the group secured order wins of $13.4 billion.These new orders included production units for MODEC, Petrobras, SBM Offshore and Shell, as well as an offshore wind solution for TenneT TSO B.V. Seatrium’s net order book stood at $26.1 billion as at June 30, up 61% from end-2023 and is the highest net order book in a decade.
About $9.3 billion (35%) of the net order book are renewables and cleaner/green solutions, an increase from $6.3 billion as at end-2023.
Seatrium also secured a series of major Repairs & Upgrades contracts. This includes 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 favoured customer contracts (FCCs) with shipowners to service their vessels over the next few years.
In the first half, the group delivered Singapore’s first newbuild Membrane LNG Bunker Vessel, Brassavola, and completed 133 Repairs & Upgrades projects.
The group continued to improve its financial health in 1HFY2024. Net leverage ratio was 2.9 times as at end-June 2024 compared to 3.2 times as at end-December 2023. The group secured a $1.1 billion syndicated bank guarantee facility in July to support future project needs. Seatrium also obtained a $400 million committed green revolving loan facility from UOB to support environmentally sustainable projects
The group’s overall performance for the year will depend on the completion of its legacy projects, the safe, timely and on-budget execution of its order book, and the implementation of identified cost saving initiatives to achieve a leaner cost structure.
Shares in Seatrium closed flat at $1.68 on Aug 1.
