CGS-CIMB analyst Lim Siew Khee reiterated a Buy rating on Seatrium Limited on June 30 and set a price target of S$2.80.
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Lim Siew Khee has given his Buy rating due to a combination of factors including Seatrium Limited’s anticipated strong financial performance and strategic project deliveries. The company is expected to report significant revenue and net profit growth in the first half of 2025, with revenues projected to reach approximately S$4.7 billion, marking an 18% year-over-year increase. Additionally, the net profit is expected to rise by 33% year-over-year, indicating robust financial health.
Another key factor influencing the Buy rating is the upcoming delivery of the Petrobras P-78 FPSO, which is a major project for Seatrium Limited. This project, secured at a value of US$2.3 billion, is set to enhance the company’s margins and is part of a series of FPSOs that will significantly contribute to Petrobras’s production capacity. Furthermore, the potential for margin expansion and the resolution of ongoing investigations by regulatory authorities are seen as catalysts that could further boost Seatrium’s stock performance.