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Seatrium Limited (SG:5E2)
SGX:5E2
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Seatrium Limited (5E2) AI Stock Analysis

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SG:5E2

Seatrium Limited

(SGX:5E2)

Rating:72Outperform
Price Target:
S$2.50
▲(9.17% 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
Contract Wins
August has been a successful month for Seatrium with over S$300m of contracts won for powerships, FSRUs, and an FLNG vessel.
Growth and Profit Expectations
Seatrium is expected to report strong 1H25 results with margin expansion and robust profit growth, underscoring its strategic diversification into renewables and cleaner energy solutions.
Orderbook and Pipeline
Seatrium has an S$18.6b orderbook and a S$30b pipeline, positioning it well in offshore, renewables, and energy transition projects.
Negative Factors
Legal Challenges
Arbitration proceedings have been launched against Seatrium by Keppel for a S$68.4m claim tied to Brazil’s Operation Car Wash.
Market Challenges
An unexpected plunge in oil prices could dampen the momentum of order wins, while integration hiccups and expenses could delay earnings recovery.
Risk Factors
Cost overruns and project cancellations are identified as key risks that could adversely affect the company's performance.

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

Seatrium Limited Business Overview & Revenue Model

Company DescriptionSeatrium 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 MoneySeatrium 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 Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong financial performance with significant revenue and profit growth, successful project deliveries, and strategic advancements in key markets. However, challenges persist in the form of geopolitical uncertainties and legal settlements, which slightly dampen the overall outlook.
Q2-2025 Updates
Positive Updates
Strong Financial Performance
Revenue rose 34% to $5.4 billion from $4 billion in the same period last year. Net profit surged 301% to $144 million from $36 million a year ago, indicating significant improvement in financial performance.
Robust Order Book and Pipeline
Net order book stood at $18.6 billion, with $6.3 billion anchored in renewables and cleaner energy solutions. Over $30 billion of near-term pipeline opportunities exist in oil and gas and offshore wind markets.
Operational Milestones and Achievements
Successfully delivered two FPSO integration projects and completed 101 repairs and upgrades, including a world-first full-scale turnkey carbon capture and storage retrofit. Entered Japan's offshore wind market with a heavy lift vessel order.
Significant Margin Expansion
Gross margin widened significantly by 370 basis points to 7.4%, supported by a favorable mix of higher-margin projects and cost management. EBITDA increased by 31% to $407 million compared to $311 million in the first half of 2024.
Successful Debt Management
Net debt to EBITDA improved from 2.9x to 1x, while the cost of debt declined from 4.9% to 4.4%, reflecting disciplined financial management and a stronger balance sheet.
Negative Updates
Ongoing Challenges in Global Markets
Trade tensions and geopolitical uncertainties have created headwinds across maritime trade and offshore development, impacting investment decisions and market dynamics.
Legal and Financial Settlements
Seatrium signed a leniency agreement related to Operation Car Wash investigation, resulting in a total settlement payment of approximately SGD 168.4 million to Brazilian authorities and USD 57 million to Singapore authorities.
FX and Revenue Challenges
Other operating income was lower due to fewer divestment gains and unfavorable FX movements, especially due to a weaker U.S. dollar.
Company Guidance
In the first half of 2025, Seatrium reported a strong financial performance despite a volatile macro environment. The company achieved a 34% increase in revenue, reaching $5.4 billion, and a remarkable 301% rise in net profit to $144 million. This growth was driven by disciplined project execution and operational efficiency, resulting in an EBITDA increase of 31% to $407 million. Seatrium's return on equity improved by 340 basis points to 4.5%, and they successfully reduced their net debt to EBITDA ratio from 2.9x to 1x. The company's diverse order book stands at $18.6 billion, with $6.3 billion focused on renewables and cleaner energy solutions. Seatrium's strategic priorities include converting pipeline opportunities into secured orders, improving margins through series-built projects, and optimizing their asset portfolio to reduce structural costs. The company is on track to meet its 2028 financial targets, focusing on delivering long-term value and sustainable growth in the energy sector.

Seatrium Limited Financial Statement Overview

Summary
Seatrium Limited is in a recovery phase with significant revenue growth and improved profitability metrics. However, cash flow generation issues remain, requiring strategic improvements for sustained growth.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue8.42B9.23B7.29B1.95B1.86B1.51B
Gross Profit88.39M290.68M-209.34M-141.96M-1.11B-491.57M
EBITDA290.61M833.52M-1.27B101.95M-954.83M-327.69M
Net Income-1.72B156.84M-2.02B-261.14M-1.17B-582.51M
Balance Sheet
Total Assets18.10B17.48B16.23B9.10B9.30B8.97B
Cash, Cash Equivalents and Short-Term Investments1.67B1.96B2.27B2.13B1.11B806.27M
Total Debt3.95B3.12B3.55B3.36B3.35B3.84B
Total Liabilities11.72B11.14B9.81B5.31B5.27B5.27B
Stockholders Equity6.36B6.34B6.39B3.77B4.00B3.67B
Cash Flow
Free 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
Neutral
Last Price2.29
Price Trends
50DMA
2.24
Positive
100DMA
2.11
Positive
200DMA
2.10
Positive
Market Momentum
MACD
<0.01
Positive
RSI
47.77
Neutral
STOCH
52.99
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:5E2, the sentiment is Neutral. The current price of 2.29 is below the 20-day moving average (MA) of 2.33, above the 50-day MA of 2.24, and above the 200-day MA of 2.10, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 52.99 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SG:5E2.

Seatrium Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$7.95B29.804.07%0.66%25.68%
65
Neutral
$15.47B7.303.02%5.25%4.27%-62.52%
$9.14B8.4930.76%3.77%
78
Outperform
S$251.21M11.7511.57%1.39%-13.64%-28.75%
66
Neutral
S$81.01M15.744.42%-9.28%-86.86%
S$55.98M9.1528.37%
51
Neutral
S$541.90M46.151.18%6.34%160.00%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SG:5E2
Seatrium Limited
2.29
0.85
59.25%
YSHLF
Yangzijiang Shipbuilding (Holdings)
2.28
0.47
25.97%
SG:5LY
Marco Polo Marine Ltd.
0.07
0.02
40.00%
SG:A04
ASL Marine Holdings Ltd.
0.08
0.02
33.33%
SG:BEZ
Beng Kuang Marine Ltd.
0.29
0.08
38.10%
SG:F83
COSCO Shipping International Singapore Co Ltd
0.12
0.00
0.00%

Seatrium Limited Corporate Events

Seatrium Limited Finalizes Leniency Agreement with Brazilian Authorities
Jul 31, 2025

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
Jul 30, 2025

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
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.

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.Date of analysis: Aug 01, 2025