OFFSHORE and marine specialist Seatrium on Friday (Aug 2) marked its turnaround with a net profit of S$36 million for the first half ended Jun 30, reversing from a net loss of S$264.4 million in the corresponding year-ago period.
Revenue for the half-year rose 39.1 per cent to S$4 billion, from S$2.9 billion the year before. The group attributed the increase in revenue to recognition from new build projects, and increased repairs and upgrades activities.
Its return to profitability reflected its strong focus on executing projects and improving margins, the group noted. This is the first time Seatrium has reported profits for the half-year period since its formation in 2023.
Earnings per share climbed to S$0.0105 in H1 FY2024, compared to a loss per share of S$0.094.
The offshore and marine specialist has a growing order book, securing order wins of S$13.4 billion in the first half. As at Jun 30, its net order book was at S$26.1 billion – the highest in a decade – representing a 61 per cent increase from end-2023.
Renewable and green solutions make up about S$9.3 billion, or 35 per cent, of Seatrium’s net order book for the half-year – an increase from S$6.3 billion from the end of 2023.
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The group’s order backlog, comprising 32 projects with deliveries until 2031, will underpin its revenue visibility for the next few years, chief executive officer Chris Ong noted.
Excluding the one-off provision of S$79 million for the full and final settlement to MH Wirth, Seatrium’s underlying net profit for H1 grew to S$115 million, reversing from a net loss of S$264 million for H1 FY2023.
Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) was S$390 million for H1, improving from S$36 million the year before. This was backed by better margins and lower overheads.
Additionally, its net leverage ratio for the half-year period was 2.9 times, falling from 3.2 times as at Dec 31, 2023.
This comes as the group successfully divested the Batangas Yard in the Philippines and entered into an option to sell Crescent Yard in Singapore in the first half of the year.
No dividend has been recommended for the period ended Jun 30, 2024.
It said overall performance for the full year rests on the completion of its legacy projects and the execution of its order book, as well as cost-saving initiatives.
The outlook for the offshore and marine industry remains positive, supported by broad-based demand across both the oil and gas and renewables sectors, the group added.
Shares of Seatrium closed flat at S$1.68 on Thursday.
