Singapore’s Seatrium, born earlier this year from the tie-up between compatriots Sembcorp Marine and Keppel Offshore & Marine, was in the red to the tune of S$264.4 million (US$198.67 million) for the first half of 2023, with the net loss widening by 85% from S$142.9 million one year prior.
This was mainly due to increases in costs for some projects, professional fees, net finance costs and tax expenses, which were partially offset by increased contributions from its repairs and upgrades businesses, Seatrium said on Friday.
The offshore and marine and energy services contractor added it is “on track with its transformation journey with oversight through a dedicated board and transformation team”, and strategic and capital structure reviews are now scheduled for completion before year-end.
However, while Seatrium anticipates operational and financial performance to continue to improve in tandem with this transformation, the company admitted it still expects to make a net loss for the 2023 financial year.
On a brighter note, UOB Kay Hian in a research note this week said it estimates there is another S$10 billion (US$7.51 billion) upside to Seatrium’s current S$20 billion orderbook.
“On top of the current four FPSOs that it has from Petrobras, Seatrium will look to bid for another two with each priced at US$3 billion as well as a few other floating production units at US$1 billion each, which are highly likely to be from repeat customers such as ExxonMobil,” UOB Kay Hian’s energy analyst, Adrian Loh, was quoted by Upstream’s sister publication Tradewinds.
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