Seatrium has reported a loss of $264.4 million for the 1HFY2023 ended June 30, 85.1% deeper than the loss of $142.9 million. This is also the group’s first-ever results for the six-month period since the completion of the combination with Keppel Offshore & Marine (Keppel O&M) – now Seatrium O&M – on Feb 28.
The higher net loss for the 1HFY2023 was mainly due to higher costs for certain projects, higher professional fees, higher net finance costs and tax expenses and mitigated by higher contribution from repairs & upgrades businesses.
However, the group achieved a positive ebitda of $27 million for the 1HFY2023, higher than the ebitda loss of $19 million in the same period the year before. Ebitda before provision for contracts and merger expenses amounted to $258 million for the six-month period.
Revenue stood at $2.89 billion, 163.5% higher than the previous half-year’s revenue of $1.09 billion, due to the combination’s consolidation of projects, strong operational execution, the achievement of product milestones and initial contributions from new projects.
Since the combination, for the four months ended June 30, Seatrium O&M contributed revenue of $1.39 billion and a loss of $130.0 million to the group’s results.
If the acquisition had taken place on Jan 1, management estimates that the consolidated revenue and loss for the 1HFY2023 would have been $3.52 billion and $622.4 million respectively.
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Group loss for the 1HFY2023 deepened by 61.9% y-o-y to $150.4 million due to higher costs for certain projects as well as merger-related costs amounting to $231 million. This was mitigated by higher contribution from the group’s repairs and upgrades businesses.
During the 1HFY2023, operating loss also deepened by 50.0% y-o-y to $172.6 million.
Loss before tax deepened by 79.2% y-o-y to $240.5 million.
Loss per share stood at 0.47 cents on a diluted basis.
During the six-month period, Seatrium secured $4.3 billion of new orders, which brings its net order book to $19.7 billion with deliveries till 2030. Of the group’s order book, renewables and cleaner/green solutions make up around 40% of the total.
In its statement on July 27, the group says it expects to see improvements in its operational and financial performance, although it still expects to make a net loss for the FY2023.
“We will continue to focus on our project management and executions, in order to further strengthen our ebitda performance,” says Chris Ong, CEO of Seatrium.
“While the group still reported a net loss in 1HFY2023, key measures are being worked on to steer the group back to net profitability. This includes the streamlining of the group’s cost structure and the completion of the ongoing capital restructuring,” he adds. “We will closely monitor the working capital needs of the group and will continue to adopt a disciplined approach to cash flow as well as liquidity management.”
As at June 30, cash and cash equivalents stood at $2.33 billion.
Shares in Seatrium closed 0.1 cent higher or 0.69% up at 14.6 cents on July 27.
