Seatrium’s revenue surged by more than 400% during the second half of financial year 2023 to S$4.4 billion. — The Straits Times
SINGAPORE: Seatrium reported a S$1.68bil (US$1.25bil) net loss for the second half of its 2023 financial year (FY23), a more than 10-fold increase from the S$118.3mil loss for FY22, 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 Brazilian authorities in relation to “Operation Car Wash”, a scandal involving allegations of payoffs to secure contracts in Brazil.
The agreements include a settlement payment of 670.7 million Brazilian reals in relation to Operation Car Wash, an alleged scandal relating to payoffs for energy-related contracts in the South American country. In addition, it said it had “also made a provision of S$82.4mil for indemnity to Keppel Corp 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 officer 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 S$1.9bil for the full year, compared with a net profit of S$261mil for FY22. The bottom line was weighed down by non-cash write-downs, provisions for contracts, legal and corporate claims, and merger expenses in FY23, which totalled S$2bil.
During the year, the company wrote off S$552mil of property, plant and equipment and S$51mil 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 S$28mil for the year.
At the top line, Seatrium’s revenue surged by more than 400% during the second half of FY23 to S$4.4bil. Full-year revenue was S$7.3bil, a three-fold increase over the S$1.9bil in FY22.
Reflecting Seatrium’s improved operational performance, its earnings before interest, taxes, depreciation and amortisation (Ebitda) in 2023 were S$236mil, a reversal from a negative Ebitda of S$7mil in 2022.
Excluding exceptional items, underlying Ebitda jumped 456% to S$628mil, from S$113mil in FY22.
Seatrium said it achieved strong order wins of S$4.5bil in FY23 and year-to-date 2024. Its net order book stood at S$16.2mil.
Of this, approximately 39% comprised renewables and cleaner/green solutions.
The company also announced it had secured more than S$3.5bil in new loans, refinancing and trade financing, including over S$2.5bil 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. — The Straits Times/ANN
