SINGAPORE – Seatrium reported a $1.68 billion net loss for the second half of its 2023 financial year, a more than tenfold increase from the $118.3 million loss for financial year 2022, and announced that it will undertake a 20:1 share consolidation exercise.
The share consolidation exercise is to increase market interest in, and the attractiveness of, its stock and is subject to shareholders’ approval at the upcoming annual general meeting, said Seatrium.
The company also announced that it has reached in-principle settlement agreements with the Brazilian authorities in relation to “Operation Car Wash”, a probe into allegations of payoffs to secure energy-related contracts in Brazil.
The agreements include a settlement payment of 670.7 million Brazilian real (about S$182.4 million) in relation to the probe. In addition, it said it had “also made a provision of $82.4 million for indemnity to Keppel Corporation in relation to this matter”.
Seatrium said in a separate announcement that the in-principle settlement agreements must be ratified by various Brazilian authorities, and that “the execution of the leniency agreements shall guarantee that the company may participate in future public bidding processes and execute contracts in Brazil”.
Seatrium chief executive Chris Ong said the in-principle settlement agreements with the Brazilian authorities allowed the company to move forward as a new organisation.
“With the combination successfully completed, the group is on track with its transformational journey led by a diverse, international board and an experienced management team,” he said. “Our focus will be on executing our strategy to build a sustainably profitable and resilient business.”
Formerly known as Sembcorp Marine, Seatrium posted a net loss of $1.9 billion for the full year, compared with a net loss of $261 million for the 2022 financial year.
The bottom line was weighed down by non-cash write-downs, provisions for contracts, legal and corporate claims, and merger expenses in financial year 2023, which totalled $2 billion.
During the year, the company wrote off $552 million of property, plant and equipment and $51 million in right-of-use assets. These were mainly shipyard assets deemed no longer core to the group following its business transformation.
Excluding exceptional items, the company posted an underlying net loss of $28 million for the year.
At the top line, Seatrium’s revenue surged by more than 400 per cent during the second half of financial year 2023 to $4.4 billion. Full-year revenue was $7.3 billion, a threefold increase over the $1.9 billion in financial year 2022.
Reflecting Seatrium’s improved operational performance, its earnings before interest, taxes, depreciation and amortisation (Ebitda) in 2023 were $236 million, a reversal from a negative Ebitda of $7 million in 2022.
Excluding exceptional items, underlying Ebitda jumped 456 per cent to $628 million, from $113 million in the 2022 financial year.
Seatrium said it achieved strong order wins of $4.5 billion in financial year 2023 and year-to-date 2024.
Its net order book stood at $16.2 billion. Of this, approximately 39 per cent comprised renewables and cleaner/green solutions.
The company also announced that it had secured more than $3.5 billion in new loans, refinancing and trade financing, including over $2.5 billion in green or sustainability-linked facilities during the year.
Its net gearing at end-December 2023 stood at 0.12 times, compared with 0.26 times as at Dec 31, 2022.
Seatrium shares closed down 0.2 cent, or 2.2 per cent, at 9.1 cents on Feb 26.
