Seatrium is expecting to make a net loss for the FY2023 ended Dec 31, 2023, despite improvements in its operational and financial performance.
“In line with the group’s business transformation, management undertook a strategic review of its business focus, operational footprint, and assets required to support its strategy of building a profitable and resilient business going forward,” says Seatrium in its announcement dated Jan 30.
“It has since completed the review, and identified core assets which bring synergies to the group, as well as non-core assets which are surplus to its operations that would be written down,” it adds.
The closure of surplus non-core assets and the write-down of excess and obsolete inventories are expected to move the group’s productivity. It is also expected to optimise its cost structure and lower cash operating expenses, resulting in significant value creation over the medium to long term.
As such, the group is expecting to make a material non-cash write-down for its surplus non-core assets as well as excess and obsolete inventories in the FY2023. The move will result in a significantly higher financial loss compared to the year before.
Seatrium will release its results on the morning of Feb 26.
See also: Trump wins Republican nomination, setting up rematch with Biden
Shares in Seatrium closed 0.4 cents higher or 3.85% up at 10.8 cents on Jan 29.
