Seatrium allocates S$200 million for new share buyback programme
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The offshore and marine player’s previous buyback programme totalled S$100 million.
PHOTO: REUTERS
Shikhar Gupta
- Seatrium has launched a new S$200 million share buyback programme, doubling its previous S$100 million plan, signalling confidence in its long-term growth and strengthened fundamentals.
- The buyback will be funded by existing cash, requires shareholder approval annually, and can repurchase up to 2 per cent of issued shares, executed based on market conditions.
- Seatrium’s H1 net profit rose 158.3 per cent to S$372.9 million, driven by asset sales and improved project margins, showing strong progress despite economic uncertainties, said CEO Chris Ong.
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SINGAPORE – Seatrium’s new share buyback programme will be worth $200 million – double the size of its previous one – in a move it says shows its confidence in its long-term outlook.
Seatrium chief executive Chris Ong said in a bourse filing on Sept 22 that the company has a clear pathway for further growth, underpinned by strengthened fundamentals and margins, as well as a robust global pipeline of opportunities that it is pursuing.
The offshore and marine player’s previous buyback programme totalled $100 million. It was announced in April 2024 and was completed on Sept 1, 2026. The new programme was first announced in July alongside Seatrium’s H1 results, though without a target value.
Funded by existing cash resources, the new programme will be subject to shareholder approval at each annual general meeting. It will also allow Seatrium to repurchase up to a maximum of 2 per cent of its total issued shares.
The new programme will be executed progressively, said Seatrium, taking into account prevailing share price levels, market conditions and the group’s capital management priorities.
“We remain committed to disciplined capital allocation and returning capital to our shareholders to drive long-term total shareholder returns,” said Ong.
Seatrium’s net profit surged 158.3 per cent to $372.9 million for H1 ended Jun 30, boosted by a $172 million gain from the sale of non-core assets.
Excluding the one-off divestment gain, its H1 net profit rose 54 per cent year on year to $212 million, on the back of higher-margin projects and productivity improvements that lowered costs.
In the results briefing, Ong had said the company made “strong progress” despite macroeconomic uncertainties.
Seatrium shares fell 3.3 per cent to close $0.07 lower at $2.05 on Sept 21.