Seatrium Limited (5E2) AI Stock Analysis

• Market Cap: S$7.04B
• Dividend Yield: 0.72%
• Average Volume (3M): 14.82M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 1.54
• 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$2.85
• Price Target Upside: 36.55% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: S$2.50 ▲(19.62% Upside)

Seatrium Limited's overall stock score reflects strong financial performance and positive earnings call highlights, which are offset by technical indicators suggesting bearish momentum and a high P/E ratio indicating potential overvaluation. The company's strategic focus on renewables and cleaner energy solutions is a positive long-term factor, but geopolitical and legal challenges remain.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Seatrium's services and effective market penetration, supporting long-term financial stability.

Order Book Strength

A robust order book, especially in renewables, positions Seatrium for sustained growth and diversification into future-focused sectors.

Debt Management

Improved debt metrics enhance Seatrium's financial flexibility, reducing risk and supporting future investment and growth opportunities.

Negative Factors

Geopolitical Uncertainties

Geopolitical challenges can disrupt operations and investment, potentially impacting Seatrium's strategic initiatives and market dynamics.

Legal and Financial Settlements

Significant legal settlements strain financial resources and may affect Seatrium's profitability and stakeholder confidence.

Contract Disputes

Ongoing contract disputes can lead to financial uncertainty and operational disruptions, affecting Seatrium's project timelines and client relations.

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: Negative
• Last Price: 2.09
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 2.09 is below the 20-day moving average (MA) of 2.11, below the 50-day MA of 2.14, and below the 200-day MA of 2.15, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 40.72 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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$13.75B	9.65	30.76%	3.41%	0.42%	40.48%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
5E2	65 Neutral	S$7.04B	26.60	4.07%	0.72%	25.68%	―
5LY	65 Neutral	S$589.08M	10.06	27.61%	0.63%	-0.58%	23.33%
BEZ	63 Neutral	S$58.52M	9.49	28.37%	2.14%	-4.17%	-54.26%
A04	61 Neutral	S$252.11M	16.55	―	0.78%	―	―
F83	53 Neutral	S$546.38M	46.54	1.18%	―	6.34%	160.00%

Seatrium Limited Corporate Events

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.

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.

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.

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.

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.

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.

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.

Seatrium Faces Contract Termination for Wind Turbine Vessel Project

Seatrium Limited has received a notice of termination for a contract involving the construction of a Wind Turbine Installation Vessel for Maersk Offshore Wind, intended for the Empire Wind 1 project in the U.S. The project was nearly complete, and Seatrium is currently assessing the validity of the termination notice and exploring legal and commercial options, including potential legal action for wrongful termination. This development may impact Seatrium’s operations and its stakeholders are advised to exercise caution.

Seatrium Limited Divests AmFELS Yard to Enhance Operational Efficiency

Seatrium Limited announced the divestment of its AmFELS Yard in Brownsville, Texas, for S$65 million to Karpower Valley LLC, a related party of Karpowership. This strategic move aims to enhance Seatrium’s capital and operational efficiencies while maintaining its commitment to the U.S. market through a focus on engineering innovation and technology capabilities in other locations. The divestment is expected to unlock value from surplus facilities and ensure a smooth transition for ongoing projects, with completion anticipated by the end of 2025.

Seatrium Limited Updates on Litigation and Financial Impact

Seatrium Limited announced an update regarding a litigation involving one of its majority-owned joint ventures. The Singapore Court has dismissed an appeal to restrain payment under a USD 126.6 million standby letter of credit, allowing the customer to receive payment. Seatrium plans to continue arbitration to resolve the dispute and recover the payment. Provisions for the full amount have already been made, and the company does not anticipate any negative impact on its financial metrics for the year ending December 2025.