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Seatrium’s net loss widens to $1.68 bil for 2HFY2023, records revenue growth of over 400% y-o-y to $4.4 bil

Excluding exceptional items, underlying net loss for the year stood at $28 million.

Seatrium has reported a net loss of $1.68 billion for its 2HFY2023 ended December, compared to the net loss of $120,529 for the same period in the preceding year.

Net loss for the full year stood at $1.9 billion, compared to the $261 million recorded in FY2022. This was largely due to non-cash write downs, provisions for contracts, legal and corporate claims, as well as merger expenses which amounted to $2 billion for FY2023,

Excluding exceptional items, underlying net loss for the year stood at $28 million.

Revenue, however, increased significantly in 2HFY2023 and FY2023 on the consolidation of projects following the business combination, strong project execution and higher repairs and upgrades activities.

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For the 2HFY2023, revenue grew by over 400% y-o-y to $4.4 billion. For the full year, revenue of $7.3 billion was a three-fold increase over $1.9 billion recorded in FY2022.

Seatrium achieved ebitda of $236 million for FY2023, compared to a negative ebitda of $7 million in the same period last year. Excluding exceptional items, underlying ebitda surged 456% y-o-y to $628 million from $113 million in FY2022.

Seatrium achieved order wins of $4.5 billion in FY2023 and year-to-date 2024, including notable contract wins such as two 2-gigawatt HVDC Offshore Converter Platforms from TenneT and Sparta FPU from Shell Inc. Its net order book stands at $16.2 billion, comprising approximately 39% renewables and cleaner/green solutions.

Seatrium proactively secured over $3.5 billion in new loans, refinancing and trade financing, including over S$2.5 billion in green or sustainability-linked facilities during the year.

Additionally, it collected almost $1 billion in receivables from Borr Drilling two years ahead of time and increased its cash holdings to over $2 billion, with undrawn committed credit facilities of over $1 billion.

Net gearing was 0.12x as at Dec 31, 2023 compared to 0.26x as at Dec 31, 2022.

As part of its capital structure review, Seatrium announced that it will undertake a 20:1 share consolidation exercise to increase market interest and attractiveness in its listed shares.

The company also announced that it has reached in-principle settlement agreements with the Brazilian Authorities in relation to the historical event Operation Car Wash, amounting to a settlement payment of R$670.7 million ($182.4 million), subject to post-closing compliance obligations. The company has also made a provision of $82.4 million for indemnity to Keppel Corp relating to the matter.

“The in-principle settlement agreements with the Brazilian Authorities allow us to move forward as a new organisation committed to the highest standards of governance. With the combination successfully completed, the group is on track with its transformational journey led by a diverse, international board and an experienced management team. Our focus will be on executing our strategy to build a sustainably profitable and resilient business,” says Seatrium CEO Chris Ong.

Shares in Seatrium closed 0.7 cents lower or 7% down on Feb 23 at 9.3 cents.

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