Seatrium (5E2) H1 2024 earnings summary

Executive summary

• Achieved first profitable half-year in 1H 2024 with underlying net profit of SGD 115 million, reversing a net loss of SGD 264 million in 1H 2023, and revenue up 39% year-over-year to SGD 4.01 billion, driven by strong project execution.

• Secured over SGD 13 billion in new orders, bringing the net order book to a decade-high SGD 26.1 billion, supporting revenue visibility through 2031.

• Renewables and cleaner/green solutions now comprise 35% of the order book, reflecting a strategic shift toward sustainability.

• Completed share consolidation and launched a SGD 100 million share buyback program.

Financial highlights

• Underlying EBITDA rose to SGD 390 million, a more than nine-fold increase from SGD 36 million year-over-year.

• Net current assets improved to SGD 700 million from net current liabilities of SGD 1.5 billion last year, driven by capital management and refinancing.

• Free cash outflow was SGD 1 billion due to working capital needs, with liquidity of over SGD 2.5 billion in cash and undrawn facilities.

• Net debt increased to SGD 1.8 billion, with a net leverage ratio of 2.9x, within the 2028 target.

• Gross profit reached SGD 147.3 million, compared to a gross loss of SGD 150.4 million a year ago.

Outlook and guidance

• Industry outlook remains positive, supported by demand in oil & gas and renewables.

• Full-year performance will depend on completion of legacy projects, execution of order book, and cost-saving initiatives.

• Targeting annual recurring savings of SGD 300 million by 2025 and mid-teens project-level gross margins.