Seatrium first-half profit soars 301% to $144 million on strong order book but shares fall
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As at the end of June, Seatrium’s net order book stood at $18.6 billion, of which $6.3 billion is for renewables and cleaner or green solutions.
PHOTO: SEATRIUM
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SINGAPORE – Seatrium’s net profit for the first half of 2025 swelled on the back of a strong order book and higher margins, the company announced in a filing on the Singapore Exchange on July 31.
Profit for the six months ended June 30 was $144 million, a 301 per cent jump from $36 million for the first half of 2024.
But underlying net profit, which excludes legal and corporate claims, rose 16 per cent to $133 million from $115 million.
No dividend was proposed for the period, the same as for the year-ago period.
Despite the strong results, Seatrium shares fell 5.4 per cent, or 13 cents, to $2.27 on July 31. The stock was the most heavily traded by volume with 41.8 million shares changing hands.
Seatrium’s results come a day after the offshore and marine company announced the conclusion of the Singapore authorities’ investigation into potential offences in Brazil. The Singapore-listed company was implicated in Operation Car Wash, a major corruption scandal in Brazil which involved allegations of paying bribes to secure contracts.
Seatrium on July 30 said it will pay financial penalties to the Brazilian and Singapore authorities
As at the end of June, Seatrium’s net order book stood at $18.6 billion, of which $6.3 billion is for renewables and cleaner or green solutions.
The order book comprises 25 projects with deliveries till 2031.
Chief executive Chris Ong said: “Our first-half financial results demonstrate the strength of Seatrium’s disciplined execution, as well as the robustness and diversity of our order book.”
He added that this healthy order book also continues to provide revenue visibility.
“Despite a volatile macro environment, rising global energy demand and an increased focus on energy security continue to shape industry priorities and underpin a sizeable pipeline for energy infrastructure assets,” he added.
He also reiterated that the penalties to be paid to the Brazil and Singapore authorities will have no material impact on the group’s 2025 earnings or net tangible assets per share. It has already reversed $14 million in provisions for the period ending June 30.
Seatrium said its gross margin rose to 7.4 per cent, from 3.7 per cent in the first half of 2024, owing to a favourable mix of higher-margin projects, operational efficiencies and continued cost optimisation.
Revenue for the first half grew 34 per cent, reflecting the strong execution of its robust order book, it added.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at $407 million, up from $311 million for the year-ago period.
In a results briefing on July 31, Mr Ong said that the first half of 2025 has tested the resilience of global markets.
“Trade tensions and geopolitical uncertainties have postponed investment decisions, creating headwinds across maritime trade and in offshore development,” he said.
“Yet, amid these challenges, there are reasons for cautious optimism. The oil and gas sector remains active, and while offshore wind currently faces headwinds, there is continued momentum in the Asia-Pacific and Europe.”
Europe is targeting 187 gigawatts of new wind capacity by 2030, with offshore wind playing a key role, he added. In the Asia-Pacific, over 250 projects are in development, driven by net-zero goals and government support.
Mr Ong also said that Seatrium’s order book is diversified across geographies and segments, which helps to buffer the impact of short-term market volatility and strengthen its revenue visibility.
The company said it is making good progress towards its 2028 financial targets. These include growing its Ebitda to over $1 billion and achieving a return on equity of 8 per cent.
In February, Seatrium delivered its fourth floating production storage and offloading vessel (FPSO) project for Guyanese waters, off the coast of South America. An FPSO is a floating vessel used by the offshore oil and gas industry.
It also delivered its 18th FPSO to BW Offshore, which will be deployed in offshore northern Australia. This is among the largest FPSOs ever delivered to the country.
Seatrium also celebrated the sailaway of the first of six newbuild FPSOs to be delivered to multinational oil and gas company Petrobras.
“Global energy demand continues to rise, driven by emerging markets, digitalisation and energy security priorities,” Seatrium said, adding that it sees stable demand for offshore oil and gas assets, with 12 ongoing projects.
When it comes to offshore wind, Seatrium also made steady progress on its projects, such as working on the second of its three offshore converter platforms for European company Tennet, which will be deployed in the Dutch North Sea.
It also has three offshore wind projects on track for delivery in 2025, which will be used in locations such as the North Sea and off the coast of Taiwan.
It is also working on a wind turbine installation vessel for use off the coast of Virginia.
“Offshore wind continues to be in demand in Europe and the Asia-Pacific, as nations advance energy transition goals,” Seatrium said.
It added that it is actively engaging transmission system operators in Europe and commercial developers in the Asia-Pacific on their requirements for upcoming offshore wind farms.
In addition, Seatrium also completed 101 repair and upgrade projects, supporting maritime decarbonisation goals.
“There is strong interest for Seatrium’s maritime decarbonisation solutions,” it said.
In June, it signed a letter of intent with long-term strategic partner Solvang ASA to install and retrofit carbon capture and storage systems.
