Seatrium posts $157 million in earnings for 2024, its first full-year profit since 2017

seatrium Returns to Profit, Proposes Dividend After Challenging Years

SINGAPORE – After a series of challenging years marked by importent losses, Seatrium, the leading offshore and marine specialist, has successfully returned to profitability in 2024. The company reported a net profit of $157 million for the year to December 2024,a remarkable turnaround from the net loss of $2 billion recorded in the previous year.

Strong Financial Performance Driven by Project Execution & Rising Business Activity

This positive result was driven by strong project execution and increased business activity in repairs and upgrades,contributing to a 27% revenue growth,reaching $9.2 billion in 2024 compared to $7.3 billion in 2023. Seatrium successfully delivered seven projects during the year and completed 231 upgrading projects, showcasing its ability to navigate fluctuating market conditions.

“We are heartened to have turned the corner, thanks to the continued support of our customers and the hard work of the Seatrium team,” said Chris Ong, CEO of Seatrium. “In FY2024, we capitalised on industry tailwinds to secure new projects, culminating in a strong net order book.”

Reversing Losses with Cost Optimization and New Order Wins

Analysts have praised Seatrium’s efforts in cost optimization, synergy, debt reduction, and cost of financing, leading to a positive earnings surprise. Lim Siew Khee, Head of Singapore Research at CGS International, noted, “Core profits were in line with our expectations, driven by the company’s efforts in cost optimisation, synergy and, in particular, in reducing debt and financing costs.”

Seatrium’s stellar performance extended to securing new orders worth $15.2 billion from both new and returning customers, marking the highest new order wins in a decade. This success can be attributed to the combined entity’s strong order books from before the merger and continued ability to secure large contracts.

Looking Ahead: A Sustainable Future with a Focus on Renewables

As of January 2025, Seatrium’s net order book stood at $23.2 billion, representing a 43% increase compared to the previous period. This extraordinary backlog includes 27 projects with deliveries scheduled throughout 2031,demonstrating a strong pipeline of future revenue.

The company is also actively investing in renewables and cleaner solutions, with $7.9 billion of its total net order book dedicated to this growing sector, showcasing their commitment to sustainable practices and a future-proof portfolio.

UOB Kay Hian research head Adrian Loh expresses optimism regarding Seatrium’s future, stating, “Seatrium’s bottom line was stronger than my numbers and, yes, it’s sustainable – thay are working through their $23 billion order book after all.”

Dividend Proposal and Market Reaction

To celebrate this remarkable turnaround and reward shareholders, Seatrium proposes a dividend of 1.5 cents per share. This proposal will be presented for shareholder approval at the company’s annual general meeting on April 23, with payment scheduled for May 19 if approved.

Despite the positive news, Seatrium’s share price experienced a slight dip of 12 cents, or 4.8%, to $2.38 as at 3.22 pm on february 21. However, this decline follows a recent surge of nearly 16% between February 11 and February 20, indicating continued investor confidence in the company’s long-term prospects.

Seatrium’s journey exemplifies the resilience and adaptability of businesses in a dynamic industry. The company’s commitment to innovation, operational excellence, and customer satisfaction has paved the way for a strong return to profitability and a promising future.

What strategic measures did Seatrium implement to optimize costs and improve its financial performance?

Seatrium’s Revival: A Conversation with CEO Chris Ong

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Seatrium’s Resilient Ride to Profitability

After navigating notable challenges,Seatrium,a leading offshore and marine specialist,has returned to profitability with a remarkable net profit of $157 million in 2024. We sat down with Seatrium’s CEO, Chris Ong, to discuss the company’s remarkable turnaround, strategies for success, and plans for the future.

On Rapid Recovery and Strong Performance

What do you attribute Seatrium’s swift turnaround to in 2024?

Chris Ong: “Firstly, I woudl like to thank our customers for their continued trust and support.The hard work of our dedicated team, coupled with strategic decisions to optimize costs and secure new projects, have been pivotal in our recovery. We capitalized on industry tailwinds and secured new orders, enabling us to deliver seven projects and complete 231 upgrading projects.”

Strategies for Success: Cost Optimization and New Orders

How have your efforts in cost optimization contributed to Seatrium’s improved performance?

Chris Ong: “Implementing cost optimization strategies has helped reduce our debt and financing costs, leading to a positive earnings surprise. We’ve been diligent in focusing on synergies and reducing costs without compromising our commitment to quality and safety.”

With $15.2 billion in new orders, how did Seatrium secure such significant business?

Chris Ong: “Our success in securing large contracts can be attributed to our strong order books from before the merger and our continued ability to secure large projects.We’ve also seen a rise in business activity, especially in repairs and upgrades, which has contributed to our 27% revenue growth.”

Looking Ahead: Sustainable Practices and Renewables

How is Seatrium positioning itself for a sustainable future in the offshore and marine industry?

Chris Ong: “We are actively investing in renewables and cleaner solutions, with approximately $7.9 billion of our net order book dedicated to this growing sector. This commitment to sustainability will ensure Seatrium’s long-term success and alignment with our customers’ goals.”

Dividend Proposal and Market Response

Why did Seatrium decide to propose a dividend of 1.5 cents per share?

Chris Ong: “We wanted to reward our shareholders for their patience and support during our challenging years. this proposal is a testament to our belief in the company’s resilience and future prospects,as indicated by our strong net order book.”

What is your take on the slight dip in Seatrium’s share price following the positive news?

Chris Ong: “While we’d prefer not to see a dip, it’s important to remember that the market is dynamic and such fluctuations are normal. Our focus remains on executing our projects and delivering long-term shareholder value.”

Stay tuned to Archyde for more updates on Seatrium’s progress and the offshore and marine industry. Share your thoughts on seatrium’s remarkable turnaround and its future in the comments below!