Seatrium Limited (5E2) AI Stock Analysis

• Market Cap: S$7.76B
• Dividend Yield: 0.7%
• Average Volume (3M): 14.82M
• Price to Earnings (P/E): 29.3
• Beta (1Y): 1.52
• Revenue Growth: 25.68%
• EPS Growth: N/A
• Country: SG
• Employees: 23,000
• Sector: Energy
• Sector Strength: 52
• Industry: Aerospace & Defense
• EPS (TTM): N/A
• Shares Outstanding: 3,411,859,000
• 10 Day Avg. Volume: 20,893,800
• 30 Day Avg. Volume: 14,816,383
• PEG Ratio: -0.42
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.77
• P/FCF Ratio: -1.66K
• 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$2.82
• Price Target Upside: 25.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: S$2.50 ▲(11.61% Upside)

The score is primarily supported by improving financial performance, especially strong free cash flow growth, better margins, and a healthier leverage profile. Technicals are constructive but close to overbought levels, while valuation (P/E 28.13 with ~0.67% yield) is the main constraint on the overall score.

Positive Factors

Free cash flow improvement

A doubling of free cash flow and FCF/net income near 1.0 indicates the business is generating durable cash from operations. This supports reinvestment, debt reduction, and funding of capex or maintenance of yards, improving long-term financial flexibility.

Gross margin recovery

Turning gross margin positive signals sustained progress in cost control and pricing on contracts. A structurally improved gross margin enhances the company's ability to absorb overheads and supports incremental profitability as revenue scales.

Stronger capital structure

Lower leverage and a healthy equity share reduce refinancing and interest risk, giving management capacity to bid on large contracts and invest in yards. This structural balance sheet improvement enhances resilience through maritime cycles.

Negative Factors

Low net profitability

A sub-3% net margin limits retained earnings and weakens the company's buffer against cyclical revenue swings. Persistently thin bottom-line profitability constrains long-run ability to self-fund expansion or sustain dividends during downturns.

Weak cash conversion of earnings

Very low OCF/net income implies reported earnings are not yet reliably converted to operating cash, highlighting working-capital or timing issues. Over the medium term this raises concerns about earnings quality and liquidity under stress.

Cyclicality of core end-markets

Exposure to shipbuilding and offshore contractors ties revenue and utilization to shipping cycles and oil & gas investment. Structural demand swings can depress new orders and margins for extended periods, pressuring long-term revenue visibility.

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 key streams, primarily from shipbuilding contracts, repair services, and vessel conversions. The company takes on large-scale projects from shipping companies, governments, and other organizations that require custom-built vessels or significant modifications to existing ones. Additionally, Seatrium benefits from long-term maintenance contracts that ensure a steady income from routine servicing of vessels. Strategic partnerships with technology providers and collaborations with other marine entities enhance its service offerings, contributing to its financial growth. The company also explores opportunities in emerging markets, further diversifying its revenue sources.

Seatrium Limited Financial Statement Overview

Summary

Seatrium Limited is on a positive trajectory with improving revenue and profitability metrics. The balance sheet shows a healthy capital structure with reduced leverage. Cash flow generation is strong, supporting the company's financial stability. Continued focus on enhancing profit margins and maintaining cash flow growth will be crucial for sustained financial health.

Income Statement

Seatrium Limited has shown a positive trend in revenue growth, with a 6.83% increase in TTM. The gross profit margin improved to 5.09% from previous negative margins, indicating better cost management. However, the net profit margin remains relatively low at 2.51%, suggesting room for improvement in profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.43, reflecting a more balanced capital structure. Return on equity is positive at 4.12%, indicating effective use of equity. The equity ratio stands at 37.43%, showing a stable financial position with a good proportion of equity in total assets.

Cash Flow

Seatrium Limited has achieved significant growth in free cash flow, with a 100.56% increase in TTM. The operating cash flow to net income ratio is 0.14, and the free cash flow to net income ratio is 0.94, indicating strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.58B	9.23B	7.29B	1.95B	1.86B	1.51B
Gross Profit	538.41M	290.68M	-209.34M	-141.96M	-1.11B	-491.57M
EBITDA	673.38M	833.52M	-1.27B	101.95M	-954.83M	-327.69M
Net Income	265.23M	156.84M	-2.02B	-261.14M	-1.17B	-582.51M
Balance Sheet
Total Assets	17.49B	17.48B	16.23B	9.10B	9.30B	8.97B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.96B	2.27B	2.13B	1.11B	772.43M
Total Debt	2.84B	3.12B	3.55B	3.36B	3.35B	3.84B
Total Liabilities	10.94B	11.14B	9.81B	5.31B	5.27B	5.27B
Stockholders Equity	6.55B	6.34B	6.39B	3.77B	4.00B	3.67B
Cash Flow
Free Cash Flow	1.07B	-4.26M	484.45M	1.01B	-637.23M	-841.52M
Operating Cash Flow	1.13B	97.35M	600.80M	1.04B	-589.09M	-749.89M
Investing Cash Flow	94.55M	119.91M	654.35M	-26.21M	-44.22M	-88.12M
Financing Cash Flow	-1.22B	-524.11M	-1.07B	-20.66M	964.16M	1.23B

Seatrium Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 2.24 is above the 20-day moving average (MA) of 2.18, above the 50-day MA of 2.15, and above the 200-day MA of 2.16, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.56 is Neutral, neither overbought nor oversold. The STOCH value of 69.54 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
BS6	79 Outperform	S$14.50B	10.18	30.76%	3.46%	0.42%	40.48%
5E2	66 Neutral	S$7.76B	29.28	4.07%	0.70%	25.68%	―
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5LY	65 Neutral	S$574.63M	9.81	27.61%	0.60%	-0.58%	23.33%
BEZ	63 Neutral	S$65.83M	10.68	28.37%	2.11%	-4.17%	-54.26%
A04	61 Neutral	S$298.42M	19.59	―	0.78%	―	―
F83	53 Neutral	S$532.94M	45.77	1.18%	―	6.34%	160.00%

Seatrium Limited Corporate Events

Seatrium Settles Maersk-Affiliate Dispute, Secures US$360m Vessel Payment Deal

Seatrium Limited has resolved its dispute with Phoenix II A/S, an affiliate of Maersk Offshore Wind, over a contract for the construction of a wind turbine installation vessel, reaffirming the existing contract and avoiding prolonged arbitration. Under the agreement, Seatrium Energy (International) will deliver the nearly completed vessel by 28 February 2026, with the buyer to pay the remaining US$360 million contract balance, including US$250 million financed through a 10-year, interest-bearing credit facility from Seatrium (SG) Pte. Ltd., secured by a mortgage and first-priority rights over the vessel and related bank accounts; all legal proceedings between the parties will be discontinued, and the company does not expect any material impact on its 2025 net tangible assets or earnings per share.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.96 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium and GE Vernova Secure Major Contract for German Offshore Grid Connection

Seatrium Limited, in collaboration with GE Vernova, has secured a significant contract from TenneT to develop the BalWin5 offshore grid connection. This project, a 2.2-gigawatt HVDC grid connection, will transmit electricity from offshore wind farms in the German North Sea to Germany’s onshore network, supporting the country’s energy transition and climate goals. The project is expected to power approximately 2.75 million households, marking a crucial step in enhancing Germany’s electricity infrastructure and energy security. This contract is part of a broader five-year Framework Cooperation Agreement with TenneT and represents the consortium’s first win for TenneT’s German 2 GW projects. GE Vernova will deliver the HVDC technology and converter stations, while Seatrium will handle the design, construction, and installation of the offshore converter platform.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.96 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Initiates Arbitration Against Maersk Affiliate Over Contract Dispute

Seatrium Limited has initiated arbitration proceedings against Phoenix II A/S, an affiliate of Maersk, following a contractual dispute over the construction of a Wind Turbine Installation Vessel intended for the Empire Wind 1 offshore project. The dispute arose after Maersk’s affiliate issued a notice of termination, which Seatrium rejected, claiming wrongful termination and asserting that the buyer breached the contract. Seatrium is pursuing legal action to resolve the dispute, indicating significant implications for its operations and stakeholder relationships in the offshore wind sector.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.96 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Initiates Arbitration Against Maersk Affiliate Over Contract Dispute

Seatrium Limited has initiated arbitration against Phoenix II A/S, an affiliate of Maersk, following a contractual dispute over the construction of a Wind Turbine Installation Vessel intended for the Empire Wind 1 offshore project. The dispute arose after Maersk’s affiliate issued a notice of termination, which Seatrium rejected, claiming wrongful termination and breach of contract. Seatrium has taken legal steps to resolve the matter through arbitration in London, asserting that the buyer has shown an intention to abandon the contract.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.96 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Secures Second Deepwater FPU Contract with BP

Seatrium Limited has secured a contract from BP Exploration and Production Inc for the Tiber Floating Production Unit (FPU) project in the Gulf of America, marking its second consecutive deepwater project for BP. This project strengthens Seatrium’s relationship with BP and highlights its growing expertise in the FPU segment. The Tiber FPU, with a production capacity of 80,000 barrels per day, will utilize advanced technologies and replicate over 85% of the design from a previous project, enhancing efficiency and safety. This contract reinforces Seatrium’s position as a leading provider of deepwater energy solutions and demonstrates its commitment to supporting BP’s offshore developments.

The most recent analyst rating on (SG:5E2) stock is a Buy with a S$2.67 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Limited Sustains Strong Momentum in Q3 2025

Seatrium Limited reported a strong third quarter in 2025, with a net order book of S$16.6 billion comprising 24 projects extending through 2031. The company completed significant projects like the WTIV Charybdis and OSS Greater Changhua 2b and 4, and is on track to deliver more by year-end. Seatrium’s strategic divestments and focus on operational efficiencies are expected to enhance margins and future earnings. The company is well-positioned to capitalize on sustained demand in the oil and gas sector and increasing opportunities in offshore wind, driven by global energy consumption trends.

The most recent analyst rating on (SG:5E2) stock is a Hold with a S$2.50 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Sells Non-Core Vessels for S$77 Million

Seatrium Limited has announced the divestment of its non-core platform supply vessels by selling its subsidiary, Guanabara Navegação Ltda, to Posidonia Shipping and Trading Ltda for approximately S$77.4 million. This strategic move aligns with Seatrium’s goal to improve capital and operational efficiencies without impacting its operations, and is expected to be completed before the end of the financial year.

The most recent analyst rating on (SG:5E2) stock is a Hold with a S$2.50 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Secures S$170M in Repair and Upgrade Contracts

Seatrium Limited has secured repair and upgrade contracts worth S$170 million, reinforcing its market leadership in the offshore and marine engineering sector. The contracts, which include projects for cruise ships, naval vessels, and offshore assets, highlight Seatrium’s expertise and commitment to safety and sustainability. These wins are expected to bolster the company’s financial performance and strengthen Singapore’s status as a hub for cruise ship upgrades.

The most recent analyst rating on (SG:5E2) stock is a Hold with a S$2.50 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.

Seatrium Faces Arbitration Over Wind Turbine Vessel Contract Dispute

Seatrium Limited has announced that it received a notice of arbitration from Maersk Offshore Wind’s affiliate following a dispute over the termination of a contract for a Wind Turbine Installation Vessel intended for the Empire Wind 1 project in the U.S. Seatrium Energy (International) Pte Ltd, a subsidiary of Seatrium, rejected the termination notice and plans to deliver the vessel by January 2026. The arbitration will be conducted in London under the London Maritime Arbitrators Association terms, and Seatrium is preparing to defend its position. The financial impact of this situation remains uncertain, and the company will provide market guidance once the outcome is clearer.

The most recent analyst rating on (SG:5E2) stock is a Hold with a S$2.50 price target. To see the full list of analyst forecasts on Seatrium Limited stock, see the SG:5E2 Stock Forecast page.