The following is a summary of the Seatrium Limited (SMBMF) Q4 2023 Earnings Call Transcript:
Financial Performance:
Seatrium reported a massive 300% increase in annual revenue to SGD7.3 billion for FY 2023.
The company's underlying EBITDA rose significantly by 456% year-on-year to SGD628 million.
Seatrium narrowed its net loss to SGD28 million from SGD141 million the previous year before pulling in an unexpected net profit of SGD33 million in the latter half of the year.
Despite depreciation costs rising to SGD256 million in the second half of the year, Seatrium's EBITDA margin remained stable at 8.4%.
The company reported cash health of $2.2 billion, mainly aimed towards working capital in future projects.
Seatrium settled the year with a decreased gearing ratio of 0.12x and a lower SGD747 million net debt position.
The company's shareholders' funds increased from SGD3.8 billion to SGD6.5 billion at the end of 2023.
Business Progress:
Seatrium completed 13 major projects, with a strong net order book of SGD16.2 billion.
The company launched its new Sustainability Vision 2030, aiming to reduce carbon emissions by 40% by 2030 and achieving Net 0 emissions by 2050.
Seatrium completed 291 projects in global repairs and upgrades, which included 46 energy-saving retrofits.
The company aims to deliver improved financial performance in the coming financial year 2024.
Less than 10% of the current order book is expected to be loss-making in the next year, with a majority of these projects to be completed within 2024.
Seatrium's US yard holds strategic importance in the renewable market and their overall strategic plan.
The company settled the historical Operation Car Wash legal matter with the Brazilian authorities, resulting in a payment of SGD182.4 million.
Despite the merger decreasing its net asset value per share, Seatrium Offshore & Marine has made a positive impact on the group's funds. The company secured over SGD3.5 billion in new loans, most of which were sustainability-linked, and has SGD2 billion in undrawn credit facilities.
More details: SembCorp Marine IR
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