Seatrium Limited (SG:5E2)
SGX:5E2
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Seatrium Limited
(SGX:5E2)
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Rating:63Neutral
Price Target:
S$2.50
▲(2.46% Upside)
Action:ReiteratedDate:03/26/26
The score is driven primarily by the improving profitability and balance-sheet trend but held back by weak/volatile cash conversion. The latest earnings call was notably positive on margin expansion, order-book quality, and capital returns, while technicals are mildly supportive and valuation is only average given the current risk profile.
Positive Factors
Backlog & Pipeline
A large secured backlog (~$17.8bn, >1.5x revenue) plus a $32bn pipeline gives multi-period revenue visibility and supports yard utilization. High backlog coverage reduces near-term revenue volatility and underpins capital allocation and staffing plans over the next 2–6 months.
Negative Factors
Weak Cash Conversion
Reported earnings have not consistently translated into cash: very low OCF-to-net-income ratios and highly volatile free cash flow constrain reinvestment and raise refinancing sensitivity. Reliance on one-off cash items to bolster reported OCF suggests underlying working-capital and conversion risks remain.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Pipeline
A large secured backlog (~$17.8bn, >1.5x revenue) plus a $32bn pipeline gives multi-period revenue visibility and supports yard utilization. High backlog coverage reduces near-term revenue volatility and underpins capital allocation and staffing plans over the next 2–6 months.
Read all positive factors
Seatrium Limited (5E2) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$8.33B
Dividend Yield0.7%
Average Volume (3M)14.82M
Price to Earnings (P/E)―
Beta (1Y)1.46
Revenue Growth25.68%
EPS GrowthN/A
CountrySG
Employees23,000
SectorEnergy
Sector Strength52
IndustryAerospace & Defense
Share Statistics
EPS (TTM)0.05
Shares Outstanding3,411,859,000
10 Day Avg. Volume20,893,800
30 Day Avg. Volume14,816,383
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)1.06
Price to Sales (P/S)0.64
P/FCF Ratio274.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$2.92Price Target Upside19.54% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)0.14
Revenue Forecast (FY)S$10.64B
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, FPS...
How the Company Makes Money
Seatrium makes money primarily by executing large, contract-based engineering and marine projects for customers, where revenue is recognized as it delivers agreed project milestones (e.g., engineering work completed, fabrication progress, installa...
Seatrium Limited Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 2026
Earnings Call Sentiment Positive
The call presented a clearly constructive picture: material top-line growth, more than doubled net profit, substantial margin improvement and stronger cash generation (particularly when excluding legacy one-offs). Management emphasized a higher-quality order book (95% Series-Build), large pipeline ($32 billion), completed project milestones (P-78, Empire Wind) and active divestments that bolster liquidity and reduce costs. Challenges noted were manageable in scale relative to positives — provisions (~$96.5 million) tied to a small set of legacy projects, one delayed naval project (NApAnt to 2027), softer repairs/upgrade activity, and some timing/FDI uncertainty in converting pipeline opportunities. On balance, highlights significantly outweigh the lowlights, supporting an overall positive outlook while recognizing conversion and legacy timing risks.Positive Updates
Strong Revenue Growth
Revenue increased ~24% year-on-year to $11.5 billion (FY2025 vs $9.2 billion FY2024), driven by disciplined execution across a diversified order book.
Negative Updates
Provisions for Onerous Contracts
Recognized ~$96.5 million in provisions related principally to two U.S. projects (delivered after year-end) and a legacy shipbuilding project (NApAnt), which weighed on reported margins and operating income.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Revenue increased ~24% year-on-year to $11.5 billion (FY2025 vs $9.2 billion FY2024), driven by disciplined execution across a diversified order book.
Read all positive updates
Company Guidance
Seatrium’s forward guidance emphasizes margin expansion, cash generation and disciplined capital allocation: it proposes doubling the dividend to $0.03/share and continuing a $100m buyback while pursuing a >$32bn pipeline (including ~$23bn oil & gas and ~$2bn conversion opportunities), supported by a $17.8bn net order book (95% Series‑Build, just over 1% non‑FPSO legacy) and >$4bn of new orders in FY2025. FY2025 results underpin the outlook — revenue ~24% to $11.5bn, net profit $324m (vs $157m), gross profit $848m and gross margin 7.4% (up ~430bp), operating cash flow $142m (ex‑one‑offs $440m), free cash flow ex‑one‑offs $443m — alongside balance sheet strength: gross debt down 5% to $2.5bn, cost of debt ~3.4%, liquidity $3.1bn, net leverage 0.8x and net gearing 0.1x. Management is targeting mid‑teens risk‑adjusted project margins, further cost savings and asset disposals (>$50m annualized savings, >$230m gross gains, >$330m cash proceeds with $110m received in FY2025, and >$100m cumulative savings by FY2028), while noting provisions of ~$96.5m related to three projects (including U.S. projects delivered and NApAnt delayed to 2027, initial contract ~ $200m).Seatrium Limited Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
63
Positive
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.58B | 11.47B | 9.23B | 7.29B | 1.95B | 1.86B |
| Gross Profit | 538.41M | 765.73M | 290.68M | -209.34M | -141.96M | -1.11B |
| EBITDA | 673.38M | 849.39M | 833.52M | -1.27B | 101.95M | -954.83M |
| Net Income | 265.23M | 323.62M | 156.84M | -2.02B | -261.14M | -1.17B |
Balance Sheet | ||||||
| Total Assets | 17.49B | 18.10B | 17.48B | 16.23B | 9.10B | 9.30B |
| Cash, Cash Equivalents and Short-Term Investments | 1.64B | 1.93B | 1.96B | 2.27B | 2.13B | 1.11B |
| Total Debt | 2.84B | 2.95B | 3.12B | 3.55B | 3.36B | 3.35B |
| Total Liabilities | 10.94B | 11.19B | 11.14B | 9.81B | 5.31B | 5.27B |
| Stockholders Equity | 6.55B | 6.91B | 6.34B | 6.39B | 3.77B | 4.00B |
Cash Flow | ||||||
| Free Cash Flow | 1.07B | 26.60M | -4.26M | 484.45M | 1.01B | -637.23M |
| Operating Cash Flow | 1.13B | 148.25M | 97.35M | 600.80M | 1.04B | -589.09M |
| Investing Cash Flow | 94.55M | -3.64M | 119.91M | 654.35M | -26.21M | -44.22M |
| Financing Cash Flow | -1.22B | -237.77M | -524.11M | -1.07B | -20.66M | 964.16M |
Seatrium Limited Technical Analysis
Positive
2.44
Price Trends
2.28
Positive
2.21
Positive
2.24
Positive
Market Momentum
0.05
Negative
60.48
Neutral
77.59
Neutral
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 2.44 is above the 20-day moving average (MA) of 2.39, above the 50-day MA of 2.28, and above the 200-day MA of 2.24, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 60.48 is Neutral, neither overbought nor oversold. The STOCH value of 77.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:5E2.
Seatrium Limited Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | S$597.42M | 4.53 | 39.11% | ― | ― | ― | |
74 Outperform | S$15.88B | 8.73 | 28.61% | 3.46% | 0.42% | 40.48% | |
65 Neutral | $15.17B | 7.61 | 4.09% | 5.20% | 3.87% | -62.32% | |
63 Neutral | S$8.33B | ― | 4.03% | 0.70% | 25.68% | ― | |
63 Neutral | S$100.94M | 6.30 | 19.38% | 2.11% | -4.17% | -54.26% | |
53 Neutral | S$324.15M | ― | 12.68% | 0.78% | ― | ― |
* Energy Sector Average
SG:5E2
Seatrium Limited
2.44
0.65
36.62%
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443.86%
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Seatrium Limited Corporate Events
Seatrium Completes Crescent Yard Sale in Cost-Saving Push
Mar 11, 2026
Seatrium Limited, a Singapore-listed engineering group, provides specialised solutions and infrastructure for the offshore, marine and energy industries worldwide. Leveraging over six decades of expertise and a global yard and technology network, ...
Seatrium Completes Karimun Yard Sale in Cost-Saving Drive
Mar 9, 2026
Seatrium Limited has completed the divestment of its Karimun Yard on Karimun Island, Indonesia, as part of a broader programme to shed non-core assets. The move is expected to generate over S$50 million in annualised cost savings once all related ...
Seatrium Wins Eighth FSRU Conversion from Karpowership, Extends LNG-to-Power Lead
Mar 9, 2026
Seatrium has secured a new contract from long-time client Karpowership to convert the LNG carrier LNGT Karadeniz into a high-capacity floating storage regasification unit, marking its eighth FSRU conversion for the Turkish power ship operator. The...
Seatrium Delivers Next-Generation Vessel to Boost Offshore Wind Installations
Feb 27, 2026
Seatrium Limited has delivered a next-generation wind turbine installation vessel (WTIV) to Maersk Offshore Wind, following successful sea trials and final readiness checks at its Tuas Boulevard Yard in Singapore. Custom-engineered to install 15+M...
Seatrium Targets Over S$50 Million in Cost Savings With Accelerated Non-Core Asset Sales
Feb 23, 2026
Seatrium Limited is intensifying its asset portfolio optimisation strategy by divesting non-core assets to streamline operations and strengthen its cost structure. The group operates a network of shipyards and engineering facilities and is shiftin...
Seatrium’s Jurong Shipyard Launches Arbitration Over P-54 FPSO Payments
Feb 10, 2026
Seatrium’s Jurong Shipyard unit has initiated arbitration proceedings in London against Petrobras Netherlands over a legacy contract for the P-54 FPSO conversion, originally signed in 2004 and later amended to address cost increases. A 2008 ...
Seatrium Corrects Completion Date for AmFELS Yard Divestment
Feb 4, 2026
Seatrium Limited, a leading global offshore, marine and energy engineering group based in Singapore, specialises in the design and construction of rigs, floaters, offshore platforms and specialised vessels, as well as ship repair, upgrading and co...
Seatrium Finalises Divestment of AmFELS Yard in Texas
Feb 2, 2026
Seatrium Limited has completed the divestment of its AmFELS yard in Brownsville, Texas, as of 30 January 2025, marking an operational exit from that U.S. facility. All projects at the yard were finished and delivered before completion of the sale,...
Seatrium and Aibel Enter Arbitration Over DolWin 5 Offshore Converter Platform
Jan 22, 2026
Seatrium’s subsidiary Seatrium New Energy Limited and its consortium partner Aibel AS have commenced arbitration proceedings over their consortium agreement for the DolWin 5 project, a 900MW offshore converter platform serving the DolWin clu...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.