Seatrium has posted its first profit since its creation following the merger of Sembcorp Marine and Keppel Offshore & Marine last year.
The Singapore company reported interim net income of SGD 115m ($86m) against a loss of SGD 264m in the corresponding period in 2023.
Seatrium recorded a revenue of SGD 4bn for the first half of this year, a 39% increase from the SGD 2.9bn achieved 12 months ago, mainly due to progressive revenue recognition from newbuilding projects and increased repairs and upgrades activities.
“We are achieving synergies and making good progress in our transformation journey,” Seatrium chief executive Chris Ong said in an earnings statement issued on Friday.
“As we work towards our 2028 targets, we will continue to grow our orderbook, build a leaner cost structure and execute our projects well.
“Through these, we are building a sustainably profitable and resilient business, and creating value for all stakeholders.”
Seatrium added SGD 13.4bn worth of orders during the first half of the year taking its net orderbook to SGD 26.1bn.
This represents a 61% increase from the end of last year and is the highest net orderbook in a decade, the company said.
Looking ahead, Seatrium said that although macroeconomic and geopolitical uncertainties persist, the outlook for the offshore and marine industry remains positive, supported by broad-based demand across both the oil and gas and renewables sectors.
“The group’s overall performance for the year will depend on the completion of its legacy projects; the safe, timely and on-budget execution of its orderbook; and the implementation of identified cost-saving initiatives to achieve a leaner cost structure,” Seatrium said.
“Building on the progress it has made, the group will continue to stay focused on driving operational excellence and sustaining a strong balance sheet.”
SGX-listed Seatrium operates shipyards and facilities in Singapore, Brazil, China, India, Indonesia, Japan, Malaysia, the Philippines, Norway, the United Arab Emirates, the UK and the US.
