Seatrium (5E2) Q4 2024 earnings summary

Executive summary

• Achieved a return to full-year profitability in FY2024, with underlying net profit of SGD 200 million, reversing a prior year loss, and reported net profit attributable to owners of $156.8 million.

• Revenue grew 27% year-over-year to SGD 9.2 billion, driven by strong project execution, milestone achievements, and higher value activity in repairs and upgrades.

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

• Board proposed a dividend of SGD 0.15 per share, to be paid in May 2025, and a total dividend of 3.0 cents per share for FY2024, subject to approval.

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

Financial highlights

• Underlying EBITDA for FY2024 was SGD 771 million, up 23% year-over-year, excluding legal and corporate claims.

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

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

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

• Net debt reduced to SGD 689 million, down 8% year-over-year.

Outlook and guidance

• Revenue recognition in 2025 will depend on project completion, with current order book providing strong visibility.

• Management remains focused on improving project margins and achieving 2028 EBITDA and ROE targets.

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

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

• Strong order win momentum underpins revenue and cashflow visibility for the next few years.