Seatrium Limited (5E2) AI Stock Analysis

• Market Cap: S$7.98B
• Dividend Yield: 0.64%
• Average Volume (3M): 13.69M
• Price to Earnings (P/E): 29.9
• Beta (1Y): 1.46
• Revenue Growth: 25.68%
• EPS Growth: N/A
• Country: SG
• Employees: 23,000
• Sector: Energy
• Sector Strength: 49
• Industry: Aerospace & Defense
• EPS (TTM): 0.04
• Shares Outstanding: 3,411,858,600
• 10 Day Avg. Volume: 17,758,260
• 30 Day Avg. Volume: 13,690,930
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: S$2.90
• Price Target Upside: 24.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 72 Outperform
• Price Target: S$2.50 ▲(6.84% Upside)

The overall stock score of 72 reflects Seatrium's strong financial performance and strategic market wins, bolstered by positive earnings call sentiment. However, cash flow issues and a high P/E ratio temper the score.

Positive Factors

Industry Leadership

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

Revenue Growth

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

Negative Factors

Financial Risks

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

Oil Price Volatility

An unexpected plunge in oil prices could dampen the momentum of order wins.

Seatrium Limited Business Overview & Revenue Model

Company Description

Seatrium Limited (5E2) is a leading global player in the offshore and marine engineering industry. The company specializes in the design, construction, and repair of rigs, floaters, offshore platforms, and specialized vessels. With a strong presence in the oil and gas sector, Seatrium also extends its expertise to renewable energy projects, offering innovative solutions for wind and solar energy infrastructure. The company operates state-of-the-art shipyards and leverages advanced technology to deliver high-quality engineering services to its international clientele.

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 shows a recovery phase with improved revenue and profitability. The balance sheet is moderately leveraged with a healthy equity base. However, cash flow generation issues need strategic improvements.

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: 2.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.34 is above the 20-day moving average (MA) of 2.30, above the 50-day MA of 2.15, and above the 200-day MA of 2.07, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 59.44 is Neutral, neither overbought nor oversold. The STOCH value of 33.65 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5E2	72 Outperform	S$7.98B	29.92	4.07%	0.64%	25.68%	―
Sector *	45 Neutral	AU$1.32B	-8.62	-15.56%	7.70%	2.10%	-32.50%
YSHLF	―	$7.91B	8.55	30.76%	4.37%	―	―
5LY	76 Outperform	S$217.47M	10.18	11.57%	1.79%	-13.64%	-28.75%
A04	66 Neutral	S$65.20M	12.22	4.42%	―	-9.28%	-86.86%
BEZ	―	S$52.87M	4.40	75.59%	―	―	―
F83	51 Neutral	S$550.85M	50.83	1.11%	―	-3.24%	200.00%

Seatrium Limited Corporate Events

Seatrium Limited Finalizes Leniency Agreement with Brazilian Authorities

Seatrium Limited has successfully signed a leniency agreement with the Brazilian Attorney-General’s Office and the Comptroller General of the Union, as previously anticipated. This development is significant for Seatrium as it may enhance its operational stability and reinforce its position in the global offshore and marine industry, potentially impacting its stakeholders positively.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.80 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Finalizes Agreements with Brazilian and Singaporean Authorities

Seatrium Limited has finalized agreements with Brazilian and Singaporean authorities related to the Operation Car Wash investigations. The company signed a leniency agreement with Brazil’s Public Prosecutor’s Office and expects to sign further agreements with other Brazilian authorities, involving a settlement payment of approximately S$168.4 million. Additionally, Seatrium has finalized a Deferred Prosecution Agreement with Singapore authorities, which includes a financial penalty of US$110 million, with a portion credited against payments to Brazil, resulting in a net payment of US$57 million to Singapore.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.31 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

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.