Seatrium (5E2) Q1 2026 earnings summary

Executive summary

• Net order book at SGD 15.5 billion as of March 31, 2026, across 24 projects, providing strong earnings visibility through 2033.

• Delivered two legacy projects in the quarter, including TSHD Frederick Paup and WTIV Maersk Viridis; non-FPSO legacy projects now about 1% of the order book.

• Completed divestments of non-core assets, unlocking over SGD 50 million in annualized cost savings and over SGD 330 million in cash proceeds.

• Robust pipeline of global opportunities, focusing on energy security, transition, and clean energy projects.

• Order book replenishment, margin efficiency, and long-term shareholder returns remain top priorities for 2026.

Financial highlights

• Gross margin improved due to better project mix, lower overheads from completed divestments, and cost control initiatives.

• Quarterly revenue run rate estimated at SGD 2–3 billion, expected to remain stable for the rest of 2026.

• Overhead cost savings of more than SGD 50 million annually and over SGD 330 million in cash proceeds from non-core asset divestments.

• One-off gain from divestments net of tax is about SGD 160 million.

• Strong balance sheet maintained in 1Q2026.

Outlook and guidance

• Pipeline stands at close to SGD 30 billion, with a reduction mainly due to the removal of SEAP 1 EPC scope.

• Focus on converting robust pipeline opportunities (>SGD 28 billion over 24 months) to grow order book.

• Pursuing more than SGD 15 billion in orders over the next 6–12 months, with a mix of oil & gas, offshore wind, and conversion projects.

• Commitment to long-term shareholder returns and sustainable growth.

• Continued emphasis on cost optimization, financial discipline, and operational excellence.