Seatrium warns of larger full-year loss on asset surplus writedown
Sign up now: Get ST's newsletters delivered to your inbox
Seatrium expects to improve its productivity once the assets surplus to its operations are written down.
PHOTO: ST FILE
Mia Pei
Follow topic:
SINGAPORE – Seatrium expects a financial loss for financial year 2023 that is “significantly higher than the previous year”, it said in a profit guidance on Jan 30.
The group noted that it is expected to make a material non-cash writedown related to “surplus non-core assets and obsolete inventories” for the financial year, which were identified by the management’s strategic review.
“In line with the group’s business transformation, management undertook a strategic review of its business focus, operational footprint and assets required to support its strategy of building a profitable and resilient business going forward,” the company said.
It added that the closure of surplus non-core assets and writedown of excess and obsolete inventories are expected to improve Seatrium’s productivity, optimise its cost structure and reduce cash operating expenses, resulting in significant value creation in the medium to long term.
Seatrium had noted during its third quarter business update on Nov 8, 2023, that a net loss for the full year is expected, despite improving operational and financial performances.
The group added on Jan 30 that it is in the process of finalising the unaudited financials to be released on Feb 26, and advised shareholders and investors to deal with its shares with caution.
Shares of Seatrium closed 0.3 cents lower at 10.5 cents on Jan 30. THE BUSINESS TIMES
