Seatrium full-year profit doubles on stronger margins; shares jump more than 4%

SINGAPORE – Offshore, marine and energy specialist Seatrium doubled its net profit for the 2025 financial year on the back of margin expansion.

The company said in a filing on the Singapore Exchange on Feb 26 that it delivered net profit of $323.6 million for the financial year ended Dec 31, a 106 per cent increase from $156.8 million in the year before.

Investors responded positively, with shares rising more than 4 per cent after the market opened to hit $2.30, after its previous close of $2.21. The stock closed at $2.28, up seven cents or 3.2 per cent.

Seatrium chief executive Chris Ong said: “We have delivered a strong set of numbers, validating our transformation efforts to strengthen our fundamentals from which we will accelerate our growth.

“This strong performance also reaffirms our strategy and sets the trajectory for us to deliver reliably today while positioning boldly for tomorrow.”

He added that Seatrium is progressing steadily to deliver its 2028 steady-state targets, with clear earnings visibility through its strong order book, a robust pipeline of opportunities, optimisation of cost structure and continued execution discipline.

At an earnings briefing after the release of the results, Mr Ong also noted that for the first time, Seatrium has recorded a positive one-year total shareholder return of 5.2 per cent.

“Our strong performance also comes on the back of heightened geopolitical and macroeconomic uncertainties that companies around the world had to grapple with.

“Despite some delays in investment decisions in several markets in the first half of 2025, we still secured over $4 billion of new orders in 2025,” he said.

He added that the company has spent the last few years transforming the business and cost model, such that 95 per cent of its net order book today is made up of series-build projects that offer lower execution risks.

“We have also achieved our synergy and cost-saving targets, accelerated non-core divestment to reduce overheads, and importantly, brought closure to Operation Car Wash in 2025,” he said, referring to

Brazil’s corruption crackdown in which Seatrium – then Sembcorp Marine – was implicated.

“This allows us to move forward with greater clarity and step forward with larger strides as we leave legacy issues behind us.”

Seatrium’s board has proposed a final dividend of three cents per share for 2025, an increase from 1.5 cents per share for 2024.

The board has also proposed to renew the share buyback mandate of up to 2 per cent of Seatrium’s total number of issued shares.

The group will continue to execute its $100 million share buyback programme launched in May 2024.

Both proposals are subject to shareholders’ approval at the upcoming meeting on April 22.

Seatrium is also well-positioned to capitalise on further opportunities, Mr Ong said.

The group is actively pursuing $32 billion in pipeline deals over the next 24 months, diversified across oil and gas, offshore wind and conversion projects.

These opportunities reflect the ongoing global energy transition and the industry’s evolving needs, Seatrium said.

Mr Ong said the order book also reflects sustained investments by Seatrium customers to meet growing energy demand that is fuelled by technological advancements, including artificial intelligence.

In particular, Seatrium sees robust oil and gas opportunities in South America and the Middle East and Africa regions, while Europe continues to drive demand for the offshore wind segment.

Mr Ong also commented on the Empire Wind project, which faced challenges due to the US’ changing sustainability policies.

The project is now more than 97 per cent complete and is on track for delivery in 2026, he said.

Once operational, it will deliver clean energy to New York, enough to power more than 500,000 homes.

The remaining exposure in Seatrium’s net order book to the US offshore wind market has been reduced to less than $10 million, he added.

In 2025, Seatrium saw revenue rise 24 per cent to $11.5 billion, from $9.2 billion in 2024, mainly due to the contributions by the oil and gas, and offshore wind segments.

The repairs and upgrades segment, which provides a steady baseload of revenue, continues to pursue higher-value repair projects and conversions that should translate into higher margins over time, Seatrium added.

Seatrium’s gross margin also improved to 7.4 per cent from 3.1 per cent, underpinned by better project mix, improved yard utilisation, productivity gains and series-build projects.

“The repeatability of these series-build projects reduces risks and enhance cost efficiency,” Seatrium said.

The group also expects to realise more than $50 million in annualised cost savings from strategic divestments announced earlier that are expected to complete by the first half of 2026.

These transactions involve shipyards, tugboats and equipment across Singapore and Indonesia.

The group expects to achieve annualised cost savings of over $100 million in total by the 2028 financial year when it completes its additional strategic divestments and the return of Admiralty Yard to the Singapore authorities.

As at Dec 31, Seatrium’s net order book stood at $17.8 billion, comprising 24 projects and providing revenue visibility through to 2033.

About 40 per cent of the net order book is renewables and cleaner and green solutions, which provide portfolio resilience across energy cycles, it said.