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OFFSHORE and marine specialist Seatrium on Friday (Aug 2) marked its turnaround with a net profit of S$36 million for the first half ended Jun 30, reversing from a net loss of S$264.4 million in the corresponding year-ago period.
The group said the return to profitability reflected its strong focus on executing projects and improving margins. This is the first time the group reported profits for the half-year period since its formation in 2023.
H1 revenue jumped 39.1 per cent to S$4 billion, from S$2.9 billion the year before. The increase was mainly due to progressive revenue recognition from newbuild projects, as well as increased repairs and upgrades activities.
Earnings per share climbed to S$0.0105 in H1 FY2024, compared to a loss per share of S$0.094.
Excluding the one-off provision of S$79 million for the full and final settlement to MH Wirth, Seatrium’s underlying net profit for H1 grew to S$115 million, reversing from a net loss of S$264 million for H1 FY2023.
Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) was S$390 million for H1, improving from S$36 million the year before. This was backed by better margins and lower overheads.
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The group secured order wins of S$13.4 billion in the first half, bringing its net order book as at Jun 30 to S$26.1 billion – the highest in a decade. This represents a 61 per cent increase in its net order book from end-2023.
It said overall performance for the full year rests on the completion of its legacy projects and the execution of its order book, as well as cost-saving initiatives.
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 added.
Shares of Seatrium closed flat at S$1.68 on Thursday.
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