Company Reports

Seatrium's first-half revenue grew 4.7% year on year to SGD 5.6 billion, while net profit rose 158% to SGD 373 million. Excluding divestment gains, net profit increased 54% to SGD 212 million. The company's SGD 13.3 billion net order book comprises 24 projects scheduled for delivery through 2033.

Singapore‑based Seatrium was established in 2023 following the merger of Sembcorp Marine and Keppel O&M. We believe the enlarged entity enhances Seatrium’s earnings prospects, underpinned by increased scale and a stronger order book. The company’s strategically located shipyards provide strong coverage across key growth markets, including Brazil and Southeast Asia, with capabilities ranging from basic repairs and upgrades to complex module fabrication and rig construction.

As of the end of March 2026, Seatrium's net order book stood at SGD 15.5 billion, with deliveries scheduled through 2033 and pipeline opportunities exceeding SGD 28 billion over the next 24 months.

Singapore‑based Seatrium was established in 2023 following the merger of Sembcorp Marine and Keppel O&M. We believe the enlarged entity enhances Seatrium’s earnings prospects, underpinned by increased scale and a stronger order book. The company’s strategically located shipyards provide strong coverage across key growth markets, including Brazil and Southeast Asia, with capabilities ranging from basic repairs and upgrades to complex module fabrication and rig construction.

Seatrium, formerly known as Sembcorp Marine, has several shipyards in Singapore together with a network of overseas yards. Their strategic locations provide strong coverage in key growth markets, including Brazil and Southeast Asia. These yards have capabilities ranging from simple repair and upgrades to complex module configuration and rig building.

Seatrium's 2025 net profit jumped 106% year over year, supported by a sharp improvement in gross margin to 7.4% from 3.1%. Its net orderbook stands at SGD 17.8 billion across 24 projects, with deliveries scheduled through 2033. Shares are up 3% today.

Following arbitration, Maersk affiliate Phoenix II A/S has agreed to settle the outstanding USD 360 million contractual balance for the Sturgeon wind turbine installation vessel. USD 250 million will be repaid under an interest-bearing credit arrangement with a tenor of up to 10 years.

Seatrium reported a net order book of SGD 16.6 billion in its third-quarter business update, composed of 24 projects with deliveries extending through 2031.

Seatrium has received a notice of termination from Maersk Offshore Wind for the construction of a Wind Turbine Installation Vessel intended for deployment at the US offshore wind farm, Empire Wind 1. The project, valued at SGD 610 million, is approximately 98.9% complete.

Seatrium, formerly known as Sembcorp Marine, has several shipyards in Singapore together with a network of overseas yards. Their strategic locations provide strong coverage in key growth markets, including Brazil and Southeast Asia. These yards have capabilities ranging from simple repair and upgrades to complex module configuration and rig building.

Seatrium reported a 34% increase in first-half revenue to SGD 5.4 billion, driven by accelerated revenue recognition from its order book. Reported operating margin improved to 4.5%, up from 2.8% a year ago, resulting in a net profit of SGD 144 million.

Seatrium's net order book stood at SGD 21.3 billion at the end of the first quarter, comprising 26 projects, with deliveries scheduled through 2031.

Seatrium recorded 2024 net profit of SGD 157 million after six years of losses. It has proposed a final dividend of SGD 0.015 per share, the first since 2017.

Seatrium, formerly known as Sembcorp Marine, has several shipyards in Singapore together with a network of overseas yards. Their strategic locations provide strong coverage in key growth markets, including Brazil and Southeast Asia. These yards have capabilities ranging from simple repair and upgrades to complex module configuration and rig building.

Seatrium's third-quarter business update contains no major surprises. It delivered three projects to customers year to date, including the fourth newbuild jack-up rig to Borr Drilling and a refurbished floating production unit to Salamanca FPS Infra.

While Seatrium’s first-half 2024 net profit of SGD 36 million is a positive compared with net loss of SGD 264 million a year ago, this is below our expectation due to one-off items such as provisions for onerous contracts and the settlement with MH Wirth. Net interest expense is also higher than expected, as the firm has raised borrowings to support working capital for its rising order book. We have pushed back our margin recovery assumptions for Seatrium and cut our 2024-26 earnings forecasts by 28-37%. Consequently, we reduce our fair value estimate to SGD 2.66 from SGD 3.00. The magnitude of the cut is less than the near-term earnings revisions, as our long-term estimate remains largely unchanged, with 2028 net profit only lowered by 2%. We think Seatrium remains undervalued, with more than 50% upside. We believe the outlook for the offshore industry remains positive and investors should accumulate the shares to take advantage of the near-term share price weakness. The ongoing share buyback program should also provide support to its share price. The new Singapore regulatory investigation, started in June regarding Operation Car Wash in Brazil, is still underway. We have not factored in additional provisions.

Seatrium, formerly known as Sembcorp Marine, has several shipyards in Singapore together with a network of overseas yards. Their strategic locations provide strong coverage in key growth markets, including Brazil and Southeast Asia. These yards have capabilities ranging from simple repair and upgrades to complex module configuration and rig building.

We raise no-moat Seatrium’s fair value estimate to SGD 3.00 per share from SGD 2.40 after incorporating the new order wins from Petrobras. This reaffirms our view that Seatrium is undervalued currently, with upside to be driven by significant new order wins. We also think its share price should be supported by the ongoing share buyback program.

Seatrium, formerly known as Sembcorp Marine, has several shipyards in Singapore together with a network of overseas yards. Their strategic locations provide strong coverage in key growth markets, including Brazil and Southeast Asia. These yards have capabilities ranging from simple repair and upgrades to complex module configuration and rig building.

We adjust Seatrium’s fair value estimate to SGD 2.40 per share from SGD 0.12 to account for the 20-for-1 consolidation of its shares. Our view on Seatrium is unchanged. The shares are currently undervalued, with upside to be driven by significant new-order wins.