Seatrium (5E2) H2 2024 earnings summary

Executive summary

• Achieved first full-year profitability since 2017, with underlying net profit of S$200 million and reported net profit of S$157 million, reversing prior year losses.

• Revenue grew 27% year-over-year to S$9.2 billion, driven by strong project execution, order wins, and higher value activity in repairs and upgrades.

• Net order book reached a decade-high of S$23.2 billion, up 43% from the previous period, with S$15.2 billion in new orders.

• Board proposed a final dividend of 1.5 Singapore cents per share, pending shareholder approval, reflecting confidence in financial stability.

• Focused on operational excellence, balance sheet strengthening, and divestment of non-core assets.

Financial highlights

• Underlying EBITDA for FY2024 was S$771 million, up 23% year-over-year; reported EBITDA increased to S$627 million from S$236 million.

• Gross profit turned positive at S$291 million, compared to a loss of S$209 million in FY2023.

• Net current assets improved to S$554 million at end-2024 from S$55 million at end-2023.

• Net debt reduced to S$689 million, down 8% year-over-year, supported by loan repayments and asset sales.

• Free cash inflow for FY2024 was S$218 million, compared to S$505 million in FY2023, supported by asset monetisation.

Outlook and guidance

• Revenue and cashflow visibility for the next few years underpinned by strong order win momentum and current order book.

• Management focused on improving project margins and achieving 2028 EBITDA and ROE targets with a diversified portfolio.

• Positioned to benefit from global energy transition and energy security trends, with focus on oil & gas, renewables, and maritime upgrades.

• Order pipeline remains active, with expectations for further wins depending on customer FID decisions.

• No specific margin guidance provided, but ongoing efforts to optimize gross and EBITDA margins.