Seatrium Limited (5E2) AI Stock Analysis

• Market Cap: $7.44B
• Dividend Yield: 0.69%
• Average Volume (3M): 10.56M
• Price to Earnings (P/E): 47.3
• Beta (1Y): 1.45
• Revenue Growth: 26.60%
• EPS Growth: N/A
• Country: SG
• Employees: 23,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 3,411,858,600
• 10 Day Avg. Volume: 8,890,750
• 30 Day Avg. Volume: 10,562,760
• PEG Ratio: -1.00
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -9.61
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.92
• Price Target Upside: 29.68% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 60 Neutral
• Price Target: S$2.00 ▼(-11.11%Downside)

Seatrium Limited's stock score is primarily influenced by its financial performance, marked by revenue growth and improved profitability. However, the high P/E ratio and cash flow challenges present notable risks. Technical indicators suggest a stable but cautious market sentiment.

Positive Factors

Order Book and Revenue

Seatrium secured another FSRU conversion contract from Kinetics, adding to its growing orderbook which provides revenue visibility to 2031.

Project Execution

Seatrium delivered the P-78 FPSO on schedule, showcasing execution strength in offshore production and reinforcing its leadership in the industry.

Strategic Diversification

Seatrium is expected to report strong results with margin expansion and robust profit growth, underscoring its strategic diversification into renewables and cleaner energy solutions.

Negative Factors

Economic Factors

An unexpected plunge in oil prices could dampen the momentum of order wins, while integration hiccups and expenses could delay earnings recovery.

Profit Expectations

Gross profit for 2H24 was below expectations due to higher cost allocation to projects and more projects at the engineering stage.

Risk Management

Cost overruns and project cancellations are identified as key risks that could adversely affect the company's performance.

Seatrium Limited Business Overview & Revenue Model

Company Description

Seatrium Limited provides engineering solutions to the offshore, marine, and energy industries. The company engages in the turnkey design, engineering, procurement, construction, and commissioning of offshore newbuilding and conversions, FSOs, FPSOs, FDPSOs, FPUs, MOPUs, gas terminals, FLNGs, FSRUs, Gravifloat, jack-ups, semi-submersibles, drill ships, TLPs, SPARs, and SSP solutions. It is also involved in the dry-docking, repair, refurbishment, retrofitting, life-extension, upgrading, and conversion of offshore and marine vessels and structures; specialised projects, including jumboisation and dejumboisation; and gas carriers, cruise ships, ferries, yachts, floating production vessels, heavy lift vessels, mobile offshore drilling units, tankers, containers, and cargo ships. In addition, the company offers turnkey engineering, procurement, construction, transportation, installation, offshore hook-up, commissioning, and brownfield solutions; high voltage direct current (HVDC) converter stations, high voltage alternating current (HVAC) substations, and wind turbine foundations; and wind turbine installation vessels, floating offshore wind turbines, floating wind-HVDC, and HVAC stations. Further, it provides specialised vessels and solutions comprising ferry, RoPax, and cruise, renewable energy support, offshore support, naval support and security, and research and scientific survey vessels; offshore oil and gas fixed platforms, including integrated production facilities, utility living quarters, and jackets; and onshore LNG and plant modules. Additionally, it engages in bulk trading of marine engineering related products; provision of management, and harbour tug services to port users; and collection and treatment of used copper slag, and the processing and distribution of copper slag. The company was formerly known as Sembcorp Marine Ltd and changed its name to Seatrium Limited in April 2023. The company was incorporated in 1963 and is headquartered in Singapore.

How the Company Makes Money

Seatrium Limited generates revenue through multiple streams, primarily from contracts in the offshore and marine engineering sector. The company earns income by designing and constructing new offshore rigs and platforms, as well as from the repair and refurbishment of existing structures. Additionally, Seatrium has diversified into the renewable energy market, undertaking projects for the construction of wind turbine foundations and other renewable infrastructure. Significant revenue is also derived from partnerships with major oil and gas companies, which rely on Seatrium's expertise and facilities for their offshore operations. The company's ability to deliver customized solutions, coupled with long-term service agreements, enhances its revenue stability and growth potential.

Seatrium Limited Financial Statement Overview

Summary

Seatrium Limited is in a recovery phase with significant revenue growth and improved profitability. However, challenges in cash flow generation require strategic improvements for sustainable growth.

Income Statement

The income statement shows a positive trend with significant revenue growth from 2023 to 2024, increasing by 26.6%. The gross profit margin improved to 3.15% in 2024 from a negative margin in 2023. Net profit margin also turned positive at 1.7%, reflecting improved profitability. However, the EBIT and EBITDA margins are still modest at 2.3% and 9.0%, respectively, indicating room for operational efficiency improvements.

Balance Sheet

The balance sheet reveals a stable equity position, with stockholders' equity representing 36.2% of total assets in 2024. The debt-to-equity ratio is reasonably managed at 0.49, suggesting moderate leverage. Return on Equity (ROE) has improved to 2.47% in 2024, which is a positive sign, though there's potential for further enhancement. Overall, the balance sheet reflects a balanced approach to asset and liability management.

Cash Flow

Cash flow analysis highlights a challenging picture with a significant drop in operating cash flow from 2023 to 2024, resulting in negative free cash flow. The free cash flow to net income ratio is unfavorable, indicating cash flow generation issues. However, the operating cash flow to net income ratio is positive at 0.62, showing some ability to convert income into cash. Improvements in cash management are necessary for financial resilience.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.23B	7.29B	1.95B	1.86B	1.51B
Gross Profit	290.68M	-209.34M	-141.96M	-1.11B	-491.57M
EBITDA	833.52M	-1.27B	101.95M	-954.83M	-327.69M
Net Income	156.84M	-2.02B	-261.14M	-1.17B	-582.51M
Balance Sheet
Total Assets	17.48B	16.23B	9.10B	9.30B	8.97B
Cash, Cash Equivalents and Short-Term Investments	1.96B	2.27B	2.13B	1.11B	806.27M
Total Debt	3.12B	3.55B	3.36B	3.35B	3.84B
Total Liabilities	11.14B	9.81B	5.31B	5.27B	5.27B
Stockholders Equity	6.34B	6.39B	3.77B	4.00B	3.67B
Cash Flow
Free Cash Flow	-4.26M	484.45M	1.01B	-637.23M	-841.52M
Operating Cash Flow	97.35M	600.80M	1.04B	-589.09M	-749.89M
Investing Cash Flow	119.91M	654.35M	-26.21M	-44.22M	-88.12M
Financing Cash Flow	-524.11M	-1.07B	-20.66M	964.16M	1.23B

Seatrium Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5E2, the sentiment is Positive. The current price of 2.25 is above the 20-day moving average (MA) of 2.08, above the 50-day MA of 2.07, and above the 200-day MA of 2.04, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 76.71 is Negative, neither overbought nor oversold. The STOCH value of 96.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:5E2.

Seatrium Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5LY	72 Outperform	S$172.47M	8.07	11.57%	2.17%	-13.64%	-28.75%
A04	69 Neutral	S$59.28M	11.85	4.42%	―	-9.28%	-86.86%
Sector *	64 Neutral	kr59.87B	13.61	1.88%	2.30%	0.43%	-4.82%
5E2	60 Neutral	$7.44B	47.29	2.48%	0.69%	26.60%	―
YSHLF	―	$7.25B	7.87	28.14%	5.07%	―	―
BEZ	―	S$47.67M	3.97	75.59%	2.61%	―	―
F83	48 Neutral	S$550.85M	51.25	1.11%	―	-3.24%	200.00%

Seatrium Limited Corporate Events

Seatrium Limited Reports Strong 1Q 2025 Performance with New Order Wins

Seatrium Limited reported its operational performance for the first quarter of 2025, highlighting the delivery of one FPSO integration project and completion of 45 repairs and upgrades. The company secured new orders, including a heavy lift vessel for the Japanese offshore wind market, contributing to a net order book of S$21.3 billion. Seatrium continues to make progress in oil and gas projects with stable order outlooks and has achieved milestones in offshore wind projects, reflecting its strategic focus on diversifying and building a resilient business.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.35 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Limited Announces Board Committee Changes

Seatrium Limited has announced changes to the composition of its Board Committees, effective June 1, 2025. The company has appointed Mr. Eng Aik Meng as a member of the Nomination and Remuneration Committee and Ms. Astrid Skarheim Onsum as a member of the Transformation Committee. These appointments reflect the company’s ongoing efforts to enhance its governance structure and strategic oversight, potentially impacting its operational efficiency and stakeholder confidence.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.35 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Delivers Landmark FPSO BW Opal to BW Offshore

Seatrium Limited has successfully delivered the FPSO BW Opal to BW Offshore, marking their 18th collaboration with the company. This delivery underscores Seatrium’s expertise and reliability in the FPSO sector, reinforcing its industry leadership. The BW Opal, one of the largest FPSOs delivered to Australia, will operate in the Barossa field with advanced energy-efficient technologies, reducing greenhouse gas emissions by 15% compared to traditional systems, which translates to a significant reduction in CO2 emissions over its lifecycle.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.35 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Limited’s 62nd AGM Highlights Leadership Change

Seatrium Limited held its 62nd Annual General Meeting at The Star Performing Arts Centre in Singapore, with participation both in person and via virtual meeting technology. The meeting was chaired by Mr. Mark Gainsborough and attended by the company’s Board of Directors. The event included the stepping down of Director Mr. Nagi Hamiyeh, indicating potential changes in the company’s leadership structure.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.35 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Secures Major FSRU Conversion Contract with Höegh Evi

Seatrium Limited has secured a contract from Höegh Evi, a global leader in floating energy infrastructure, to convert the LNG carrier Hoegh Gandria into a Floating Storage Regasification Unit (FSRU). This project, set to begin in May 2025 with an 18-month duration, will enhance Seatrium’s reputation as a pioneer in FSRU conversions and strengthen its longstanding partnership with Höegh Evi. The FSRU will be deployed in Egypt, supporting the country’s energy infrastructure and highlighting Seatrium’s commitment to delivering complex projects with precision.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.35 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Limited Appoints New Chief Financial Officer

Seatrium Limited has announced the resignation of its Chief Financial Officer, Mr. Adrian Teng, effective April 28, 2025, as he pursues personal interests. Dr. Stephen Lu, currently the Executive Vice President for Strategy, will take over as CFO starting April 29, 2025. Dr. Lu brings over 15 years of experience in strategy and corporate finance, with a strong background in the energy and infrastructure industries. His appointment is expected to support Seatrium’s growth and transformation initiatives.