As part of Seatrium’s merger, it booked a massive $2 billion impairment for surplus assets and provisions, pushing the company into a net loss of $1.94 billion for FY2023. The impairment includes a $182.4 million “leniency agreement” with Brazil to conclude a massive long-running corruption probe dubbed Operation Car Wash. By doing so, Seatrium can put this episode behind and actively bid for new projects, including two rigs reportedly worth $4 billion each, from repeat customer Petrobras.
Chris Ong, CEO of Seatrium, recognises the importance of symbolism as he describes how the enlarged company, refreshed and recapitalised, deserves more attention from the investment community. “Today, we are no longer green or red,” says Ong, referring to the respective corporate colours of Sembcorp Marine (SGX:S51
) and Keppel Offshore & Marine. “We are an electric blue Seatrium.”
Speaking to the media, analysts and investors at Seatrium’s inaugural investor day on March 15, Ong announced its goal to achieve consistent ebitda of over $1 billion by FY2028, which he admits is “very very ambitious”. For context, the company reported ebitda of just $236 million in FY2023 ended December 2023, continuing its turnaround from the multi-year industry downcycle.
