Seatrium has reported a net loss of $1.68 billion for its 2HFY2023 ended December, compared to the net loss of $120,529 for the same period in the preceding year.
Net loss for the full year stood at $1.9 billion, compared to the $261 million recorded in FY2022. This was 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.
Excluding exceptional items, underlying net loss for the year stood at $28 million.
Revenue, however, increased significantly in 2HFY2023 and FY2023 on the consolidation of projects following the business combination, strong project execution and higher repairs and upgrades activities.
For the 2HFY2023, revenue grew by over 400% y-o-y to $4.4 billion. For the full year, revenue of $7.3 billion was a three-fold increase over $1.9 billion recorded in FY2022.
Seatrium achieved ebitda of $236 million for FY2023, compared to a negative ebitda of $7 million in the same period last year. Excluding exceptional items, underlying ebitda surged 456% y-o-y to $628 million from $113 million in FY2022.
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Seatrium achieved order wins of $4.5 billion in FY2023 and year-to-date 2024, including notable contract wins such as two 2-gigawatt HVDC Offshore Converter Platforms from TenneT and Sparta FPU from Shell Inc. Its net order book stands at $16.2 billion, comprising approximately 39% renewables and cleaner/green solutions.
Seatrium proactively secured over $3.5 billion in new loans, refinancing and trade financing, including over S$2.5 billion in green or sustainability-linked facilities during the year.
Additionally, it collected almost $1 billion in receivables from Borr Drilling two years ahead of time and increased its cash holdings to over $2 billion, with undrawn committed credit facilities of over $1 billion.
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Net gearing was 0.12x as at Dec 31, 2023 compared to 0.26x as at Dec 31, 2022.
As part of its capital structure review, Seatrium announced that it will undertake a 20:1 share consolidation exercise to increase market interest and attractiveness in its listed shares. Upon approval by shareholders at an AGM to be called, it share base will be consolidated from 68.2 billion shares to 3.4 billion.
The company also announced that it has reached in-principle settlement agreements with the Brazilian Authorities in relation to the historical event Operation Car Wash, amounting to a settlement payment of R$670.7 million ($182.4 million), subject to post-closing compliance obligations. The company has also made a provision of $82.4 million for indemnity to Keppel Corp relating to the matter.
“The in-principle settlement agreements with the Brazilian Authorities allow us to move forward as a new organisation committed to the highest standards of governance. With the combination successfully completed, the group is on track with its transformational journey led by a diverse, international board and an experienced management team. Our focus will be on executing our strategy to build a sustainably profitable and resilient business,” says Seatrium CEO Chris Ong.
Shares in Seatrium closed 0.7 cents lower or 7% down on Feb 23 at 9.3 cents.
