Seatrium (5E2) H1 2024 earnings summary

Executive summary

• Achieved first-half profitability in 2024 with underlying net profit of S$115 million, reversing a net loss of S$264 million in 1H2023, and revenue up 39% year-over-year to S$4.01 billion, driven by strong project execution and milestone achievements.

• Secured over S$13.4 billion in new orders, bringing the net order book to a decade-high S$26.1 billion, with 32 projects extending revenue visibility to 2031.

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

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

Financial highlights

• Underlying EBITDA surged to S$390 million, a more than nine-fold increase from S$36 million year-over-year, excluding a one-off S$79 million provision.

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

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

• Net debt increased to S$1.8 billion, with a net leverage ratio of 2.9x as of June 2024.

• Gross profit reached S$147 million, compared to a loss of S$150 million in 1H2023.

Outlook and guidance

• Offshore & marine industry outlook remains positive, supported by demand in oil & gas and renewables.

• Full-year performance depends on legacy project completion, order book execution, and cost-saving initiatives.

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