Seatrium chief executive Chris Ong. — The Straits Times
SINGAPORE: Seatrium’s net profit for the first half of 2025 (1H25) swells on the back of a strong order book and higher margins, the company says in a filing on the Singapore Exchange yesterday.
Profit for the six months ended June 30 was S$144mil, a 301% jump from S$36mil for 1H24. But underlying net profit, which excludes legal and corporate claims, rose 16% to S$133mil from S$115mil.
No dividend was proposed for the period, the same as for the year-ago period.
Seatrium’s results come a day after the offshore and marine company announced the conclusion of the Singapore authorities’ investigation into potential offences in Brazil.
The Singapore-listed company was implicated in Operation Car Wash, a major corruption scandal in Brazil, which involved allegations of paying bribes to secure contracts.
Seatrium on July 30 said it will pay financial penalties to the Brazilian and Singaporean authorities totalling S$241.7mil to settle the long-drawn corruption probe.
As of the end of June, Seatrium’s net order book stood at S$18.6bil, of which S$6.3bil are renewables and cleaner or green solutions.
The order book comprises 25 projects with deliveries till 2031.
Chief executive officer Chris Ong said, “Our first-half financial results demonstrate the strength of Seatrium’s disciplined execution, as well as the robustness and diversity of our order book.”
He added that this healthy order book also continues to provide revenue visibility.
“Despite a volatile macro environment, rising global energy demand and an increased focus on energy security continue to shape industry priorities and underpin a sizeable pipeline for energy infrastructure assets,” he added.
“We remain confident in delivering long-term value to all our stakeholders by building a profitable and resilient business.”
Seatrium said its gross margin rose to 7.4%, from 3.7% in 1H24, due to a favourable mix of higher-margin projects, operational efficiencies, and continued cost optimisation.
Revenue for the first half grew 34%, reflecting the strong execution of its robust order book, it added.
Earnings before interest, taxes, depreciation, and amortisation (Ebitda) stood at S$407mil, up from S$311mil for the year-ago period.
In its outlook, the company said it has a diversified portfolio of offshore oil and gas, offshore wind solutions, and maritime repairs and upgrades, which positions it favourably to capitalise on long-term energy demand growth.
“The group’s multi-pronged strategy and proven execution have enhanced the resilience of its business at a time of ongoing geopolitical volatility,” Seatrium added.
“Looking ahead, Seatrium remains focused on achieving profitable growth by expanding its franchise of series-build projects, prioritising execution excellence, enhancing productivity, and driving cost efficiencies,” it said.
It also noted that the group is making good progress towards its 2028 financial targets.
These include growing its Ebitda to over S$1bil and achieving a return on equity of more than 8%.
In February, Seatrium delivered its fourth floating production storage and offloading vessel project for Guyanese waters, off the coast of South America. — The Straits Times/ANN
