Seatrium (5E2) H2 2023 earnings summary

Executive summary

• FY2023 revenue rose 274% YoY to S$7.291b; underlying EBITDA increased 456% to S$628m, while underlying net loss narrowed to S$28m.

• Reported net loss was S$1.940b, reflecting S$2.026b of exceptional items; underlying net profit was S$33m in 2H2023.

• Net order book reached S$16.2b, supported by S$4.5b of new orders in FY2023 and YTD 2024 and 27 projects under execution.

Financial highlights

• Revenue was S$7.291b vs S$1.947b in FY2022; underlying EBITDA was S$628m vs S$113m.

• Underlying net loss narrowed to S$28m from S$141m; reported net loss widened to S$1.940b from S$261m.

• FY2023 exceptional items totaled S$2.026b; EBITDA was S$236m.

• Free cash inflow was S$506m vs S$1.013b in FY2022; operating cash flow was S$601m.

Outlook and guidance

• FY2024 financial performance is targeted to improve, with focus on quality, timely order-book execution, earnings improvement and business resilience.

• Asset rationalisation is expected to improve productivity, optimise the operating structure and reduce cash operating expenses; investment will continue in core assets and capabilities.

• Integration is expected to enable greater synergies through an enlarged footprint, operational scale and enhanced capabilities.