Seatrium H2 profit up 48.3%, full-year profit doubles on margin expansion

[SINGAPORE] Marine engineering company Seatrium reported a net profit of S$179.3 million for the second half, a 48.3 per cent increase from S$120.9 million in the same period a year earlier.

For the full year, the offshore and marine specialist’s net profit was up 106 per cent at S$323.6 million from S$156.8 million in FY2024.

The H2 and full-year earnings increases were mainly attributed to higher contributions from revenue recognition, a higher share of profit from associates, and lower net finance costs. However, this was partially offset by higher tax expenses, the company said on Thursday (Feb 26).

Earnings per share (EPS) for the second half stood at S$0.0529, compared with S$0.0356 in the year-ago period.

On the back of its strong performance, Seatrium has proposed a final cash dividend of S$0.03 per share, payable on May 18 after the record date of May 6.

Revenue for the half year rose 17 per cent to S$6.1 billion, from S$5.2 billion. Meanwhile, full-year revenue rose 24.3 per cent to S$11.5 billion, driven by “strong execution” and the achievement of production milestones for projects.

The full-year increase was mainly down to the oil and gas and offshore wind segments. These were helped by the execution of the Petrobras P-Series floating production storage and offloading projects and TenneT 2GW high-voltage direct current projects.

For FY2025, Seatrium’s net profit surged to S$323.6 million from S$156.8 million before. Full-year earnings per share stood at S$0.0956, compared with S$0.0461 in the prior year.

The group snared over S$4 billion in new orders last year and completed 185 vessels in the repairs and upgrades segment.

As at Dec 31, Seatrium’s net order book stood at S$17.8 billion, up from S$23.2 billion in 2024. The orders comprise 24 projects with deliveries extending through to 2033, providing long-term revenue visibility. About 40 per cent of this net order book consists of renewables and cleaner or green solutions.

Seatrium said its active refinancing efforts drove down the cost of debt and lengthened its average loan maturity. As of end-2025, Seatrium’s net debt stood at S$680 million, slightly down from S$690 million previously. The net leverage ratio improved significantly to 0.8 times, down from 1.1 times in the prior year.

Outlook

The company said it is actively pursuing over S$32 billion in pipeline deals over the next 24 months. These opportunities are diversified across oil and gas, offshore wind and conversions projects.

It also remains focused on pursuing higher-value projects to strengthen its margin profile, optimising its cost structure through financial discipline and strategic divestments, and maintaining operational and execution discipline.

In a report on Monday, Citi analyst Luis Hilado said Seatrium should deliver its 2028 target of S$1 billion earnings “a year earlier”. He also called on the company’s management to “outline any other divestment targets going forward and their potential overhead savings and margin realisation”.

On Thursday, Chris Ong, chief executive officer at Seatrium said: “We are progressing steadily to deliver our FY2028 steady-state targets.”

Shares of Seatrium fell 1.8 per cent to close S$0.04 lower at S$2.21 on Wednesday.