Seatrium reports S$1.7B net loss for H2, leading to S$1.9B net loss for FY23 - Singapore News

Source: The Independent
Author: Mary Alavanza

SINGAPORE: Seatrium reports a S$1.7 billion net loss for the second half that ended Dec 31, 2023.

This loss, which widened from S$118.3 million in the same period a year earlier, was primarily due to a surge in operating expenses to S$1.2 billion, a stark contrast to S$63.7 million in H2 FY2022.

Seatrium acknowledged a S$866.6 million write-down of property, plant, and equipment, alongside a S$277.7 million write-down of right-of-use assets.

The group clarified that this write-down stemmed from reclassifying certain assets, such as yard, damaged, or obsolete assets, as non-core assets, The Business Times reports.

Loss per share (LPS) for the period clocked in at S$0.0246, in contrast to S$0.0038 in H2 FY2022.

Despite this, revenue for the half-year surged to S$4.4 billion from S$852.2 million, driven by heightened sales to external parties for rigs and floaters, offshore platforms, repairs and upgrades, and specialised shipbuilding.

For the full fiscal year 2023, Seatrium recorded a net loss of S$1.9 billion compared to S$261.1 million the previous year, with LPS at S$0.0312 as opposed to S$0.0083.

The group's revenue for the year reached S$7.3 billion, a substantial leap from S$1.9 billion in FY2022.

Seatrium is proposing a 20-for-1 share consolidation exercise to bolster market interest as part of its capital structure review. This proposal will be subject to shareholders' approval at the forthcoming annual general meeting scheduled for April.

Singapore Business Review reported that despite the losses in the fiscal year 2023, the company is positive about 2024.

Seatrium said, "With the successful completion of the integration and strategic review, the group is expected to benefit from its deep customer relationships and derive greater synergies from an enlarged business footprint, operational scale and enhanced capabilities."

In another development, Seatrium revealed in-principle settlement agreements with Brazilian authorities to pay S$182.4 million (670.7 million reais), with an additional provision of S$82.4 million for indemnity to Keppel, concerning Operation Car Wash.

While these provisions relate to a "one-off historical event," they constitute 12% of the group's earnings per share and 10% of net tangible assets per share as of Dec 31, 2023.

Seatrium affirmed that these provisions would not affect its financial metrics for FY2024 and reiterated its commitment to aiding ongoing investigations by Singapore authorities.

Emphasising its commitment to compliance, Seatrium stated that the company "remains committed to the highest standards of compliance with all applicable laws, rules and regulations, including in particular zero tolerance for bribery and corruption."

The company highlighted its robust compliance programme, which includes "anti-corruption risk assessments, mandatory compliance training for employees, third-party due diligence, internal and external anti-corruption audits, and a commitment to continuously monitor and improve its policies and procedures." /TISG