Seatrium Reports a Deepening Net Loss of S$264.4 Million in 1HFY2023
After the merger with Keppel Offshore & Marine (now known as Seatrium O&M), $Seatrium(S51.SG$ released its first-ever financial results covering a six-month period on July 28, 2023. The company recorded a net loss of S$264.4 million for 1HFY2023 ended June 30, which significantly widened from last year's loss of S$142.9 million.
1. Positive revenue growth trajectory:
Seatrium posted an outstanding revenue of S$2.9 billion for 1H2023, representing a significant YoY growth of 164%, which can be attributed to the successful combination, strong operational execution, attainment of production milestones, and initial contributions from new projects.
2. EBITDA turned positive from negative:
The company's 1H2023 EBITDA increased significantly to S$27 million compared to a negative S$19 million in 1H2022. Notably, EBITDA before provision for contracts and merger expenses reached an impressive S$258 million for 1H2023.
3. Widened net loss:
The company's net loss in 1H2023 deepened to S$264 million from S$143 million in 1H2022, reflecting an 85% YoY surge. The increase was mainly due to provisions for contracts and merger expenses, higher net finance costs, tax expenses, and elevated depreciation and amortization expenses.
“While the Group still reported a net loss in 1H2023, key measures are being worked on to steer the Group back to net profitability. This includes the streamlining of the Group’s cost structure and the completion of the ongoing capital restructuring,” said Chris Ong, CEO of Seatrium.
4. Capital, gearing, and ROE:
The shareholders' funds of Seatrium increased significantly, mainly due to new shares issued to Keppel Corporation Limited as part of the acquisition of Seatrium O&M. The rising net debt was driven by higher borrowings required to execute the order book. Despite this increase, the net gearing ratio improved to 0.17 times, primarily due to a higher equity base.
1. Delivery of four key projects:
Seatrium's delivery track record remains impressive, underpinned by its solid execution capabilities and robust operational performance. The company successfully delivered four key projects in 1H2023, including the second LNG-powered containership. Currently, the company has more than 25 projects under execution.
2. New contract wins:
The company secured a strong order intake of S$4.3 billion during 1H2023, leading to a notable expansion of its net order book to S$19.7 billion, with deliveries till 2030. Renewables and cleaner/green solutions make up about 40% of the net order book.
Source: Seatrium
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