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Seatrium Limited (SG:5E2)
SGX:5E2

Seatrium Limited (5E2) AI Stock Analysis

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Seatrium Limited

(SGX:5E2)

Rating:68Neutral
Price Target:
S$2.50
▲(19.62%Upside)
Seatrium Limited's strong performance in the latest earnings call, with record revenue growth and a return to profitability, significantly boosts its overall score. However, concerns over cash flow generation and relatively high valuation metrics slightly dampen the outlook. Technical indicators show positive momentum, supporting a moderate investment appeal.
Positive Factors
Cost Optimisation and Profitability
Seatrium's cost optimisation efforts and lower financing costs are bearing fruit, resulting in an underlying profit in line with forecasts.
Order Book and Revenue Growth
Order book is strong at S$23.2bn, with significant order wins contributing to revenue growth.
Renewable Energy Initiatives
Interest in renewables remains high with a robust level of enquiries and firm belief that order cancellations will not happen.
Negative Factors
Earnings Expectations
Gross profit for 2H24 was below expectations due to higher cost allocation to projects and more projects at the engineering stage.
Oil Price Volatility
An unexpected plunge in oil prices could dampen the momentum of order wins, while integration hiccups and expenses could delay earnings recovery.
Project Cost Overruns
There are downside risks including potential cost overruns and project cancellations.

Seatrium Limited (5E2) vs. iShares MSCI Singapore ETF (EWS)

Seatrium Limited Business Overview & Revenue Model

Company DescriptionSeatrium 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 MoneySeatrium Limited generates revenue primarily through its project-based model, where it secures contracts for the construction and repair of offshore and marine structures. Key revenue streams include the design and fabrication of oil rigs and floating production systems, ship repair and conversion services, and the construction of specialized vessels. The company often collaborates with major oil and gas companies and shipowners, which are significant contributors to its earnings. Additionally, strategic partnerships and long-term contracts play a crucial role in sustaining its revenue flow, as they provide a steady stream of projects and enhance its market presence.

Seatrium Limited Earnings Call Summary

Earnings Call Date:May 29, 2025
(Q4-2024)
|
% Change Since: 1.46%|
Next Earnings Date:Jul 25, 2025
Earnings Call Sentiment Positive
Seatrium's earnings call for FY 2024 was marked by significant achievements, including record revenue growth, a return to profitability, and a robust order book. Despite these positives, challenges with U.S. projects and provisions impacting margins were noted. Overall, the company's strategic direction and operational success contribute to a positive outlook.
Q4-2024 Updates
Positive Updates
Record Revenue Growth
Seatrium's revenue grew to $9.2 billion in FY 2024, marking a 27% increase year-on-year due to larger order book execution and higher value activities.
Return to Profitability
The company achieved a turnaround to full-year profitability with an underlying net profit of $200 million, compared to a net loss of $28 million in the previous year.
Strong Order Book
Seatrium achieved a net order book of $23.2 billion, a 43% increase from the previous period, driven by $15.2 billion worth of new orders.
Operational Excellence
Delivered 7 projects, including Singapore's first newbuild LNG bunker vessel, and completed 231 repair and upgrade projects.
ESG and Environmental Initiatives
Achieved a 30% reduction in Scope 1 and 2 emissions and secured ISO 37001 anti-bribery certification.
Negative Updates
Challenging U.S. Projects
Continued challenges with U.S. projects, including incremental provisions associated with these projects.
Provisions Impacting Margins
Additional provisions of $43 million in the second half impacted gross margins, primarily due to challenging projects.
Company Guidance
In the 2024 financial year, Seatrium reported a significant turnaround with a revenue increase of 27% to $9.2 billion and an underlying EBITDA of $771 million, marking a 23% year-on-year growth. The company achieved a full-year profitability with an underlying net profit of $200 million, recovering from a net loss of $28 million in the previous year. Seatrium's order book reached a record high of $23.2 billion, a 43% rise from $16.2 billion the previous period, supported by $15.2 billion in new orders. The Board proposed a dividend of $0.015 per share. Operationally, Seatrium completed 231 projects in the Repairs and Upgrades segment and delivered 7 projects, including a newbuild LNG bunker vessel. The company also reduced its net debt by 8% to $689 million and maintained a net leverage ratio of 1.1x. Looking ahead, Seatrium aims to achieve its 2028 EBITDA and ROE targets, supported by a diversified portfolio and a focus on operational excellence.

Seatrium Limited Financial Statement Overview

Summary
Seatrium Limited demonstrates a recovery phase with improved revenue and profitability metrics, marking a positive trajectory. The balance sheet is moderately leveraged with a healthy equity base, which is encouraging. However, cash flow generation remains a concern, requiring strategic improvements to ensure sustainable growth. Overall, the company is on a path to recovery, but it must address cash flow challenges to enhance financial stability.
Income Statement
75
Positive
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
65
Positive
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
50
Neutral
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
8.42B9.23B7.29B1.95B1.86B1.51B
Gross Profit
88.39M290.68M-209.34M-141.96M-1.11B-491.57M
EBIT
-45.87M212.45M-1.57B-252.40M-1.20B-584.85M
EBITDA
290.61M833.52M-1.27B101.95M-954.83M-327.69M
Net Income Common Stockholders
-1.72B156.84M-2.02B-261.14M-1.17B-582.51M
Balance SheetCash, Cash Equivalents and Short-Term Investments
806.27M1.96B2.27B2.13B1.11B806.27M
Total Assets
8.97B17.48B16.23B9.10B9.30B8.97B
Total Debt
3.84B3.12B3.55B3.36B3.35B3.84B
Net Debt
3.07B1.18B1.28B1.27B2.25B3.07B
Total Liabilities
5.27B11.14B9.81B5.31B5.27B5.27B
Stockholders Equity
3.67B6.34B6.39B3.77B4.00B3.67B
Cash FlowFree Cash Flow
-434.12M-4.26M484.45M1.01B-637.23M-841.52M
Operating Cash Flow
-300.51M97.35M600.80M1.04B-589.09M-749.89M
Investing Cash Flow
-35.25M119.91M654.35M-26.21M-44.22M-88.12M
Financing Cash Flow
-359.74M-524.11M-1.07B-20.66M964.16M1.23B

Seatrium Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2.09
Price Trends
50DMA
1.97
Positive
100DMA
2.09
Positive
200DMA
1.97
Positive
Market Momentum
MACD
0.02
Positive
RSI
59.84
Neutral
STOCH
66.67
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 2.09 is above the 20-day moving average (MA) of 2.05, above the 50-day MA of 1.97, and above the 200-day MA of 1.97, indicating a bullish trend. The MACD of 0.02 indicates Positive momentum. The RSI at 59.84 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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

Overall Rating
UnderperformOutperform
Sector (66)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
SG5E2
68
Neutral
$6.92B44.032.48%0.75%26.60%
66
Neutral
$4.49B12.285.32%248.53%4.08%-12.00%
$9.09B12.9320.60%3.12%
$2.47B14.778.59%6.02%
DE3UG
€449.32M5.088.35%5.76%
SGBEZ
S$35.95M3.0475.59%3.41%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:5E2
Seatrium Limited
2.09
0.41
24.63%
SCRPF
Sembcorp Industries
5.54
1.94
53.89%
VEMLF
Venture
9.34
-0.42
-4.30%
DE:3UG
Zheneng Jinjiang Environment Holding Co., Ltd.
0.28
0.08
40.00%
SG:BEZ
Beng Kuang Marine Ltd.
0.18
0.00
0.00%

Seatrium Limited Corporate Events

Seatrium Limited Reports Strong 1Q 2025 Performance with New Order Wins
May 29, 2025

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
May 29, 2025

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
May 28, 2025

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
May 22, 2025

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
May 13, 2025

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
Apr 25, 2025

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.

Seatrium Limited Settles EIG Litigation with USD1 Million Agreement
Apr 3, 2025

Seatrium Limited has announced the settlement of a legal dispute with EIG Management Company, LLC, which was initially brought against Keppel Offshore & Marine Limited. Following the merger of KOM and Sembcorp Marine Limited, Seatrium took over the litigation and has agreed to resolve the matter by paying EIG a nominal sum of USD1 million. This settlement marks the conclusion of the litigation, potentially stabilizing Seatrium’s operational focus and reducing legal uncertainties for its stakeholders.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.