Seatrium Reports 158% Surge in H1 Net Profit to S$373 Million Driven by Asset Sales

Singapore, Singapore Jul 31, 2026 ALN: [SINGAPORE] Seatrium, a prominent player in the marine and offshore sector, has reported a remarkable 158% surge in its net profit for the first half of the fiscal year ending June 30, reaching S$373 million, compared to S$144 million during the same period last year. This significant increase is primarily attributed to gains from asset divestments and improved margin efficiency, which have bolstered the company’s financial performance amidst a challenging economic landscape.

When excluding one-off gains from asset divestments, the company's net profit still demonstrated a robust growth of 54% year-on-year, amounting to S$212 million, up from S$138 million in the first half of 2025. The positive outlook for the company was reflected in its stock performance, with shares rising by 8.9% following the release of favorable profit guidance last week.

In terms of revenue, Seatrium recorded a 4.7% increase, totaling S$5.6 billion for H1 2026, compared to S$5.4 billion in the previous year’s corresponding period. The growth in revenue was largely supported by the steady execution of its order book, indicating effective operational management and project delivery capabilities. This growth is particularly notable in the context of the broader marine and offshore industry, which has faced various challenges in recent years, including fluctuating oil prices and changing regulatory environments.

Gross profit for the half-year period saw an increase of 22.1%, reaching S$482.3 million, while the gross margin expanded to 8.6%, up from 7.4% a year earlier. This improvement can be attributed to a growing mix of higher-margin projects and reduced overhead costs resulting from strategic divestments and productivity enhancements. Such financial metrics are critical for stakeholders as they reflect the company’s ability to manage costs effectively while pursuing profitable projects. The increase in gross margin is particularly significant as it indicates that the company is not only increasing sales but is also improving its efficiency and profitability on each project.

During this period, Seatrium recorded net divestment gains of S$172 million from the sale of non-core assets, a significant increase from S$7 million reported in H1 2025. This strategic move aligns with the company's focus on optimizing its asset portfolio and enhancing operational efficiency. The decision to divest non-core assets is a common strategy among companies seeking to streamline operations and concentrate on their most profitable areas, particularly in sectors that are experiencing rapid change and competition. Furthermore, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA), excluding divestment gains, rose by 20% to S$479 million, underscoring the strength of its core operations. This metric is often used by investors to assess a company's operating performance, providing a clearer picture of its profitability before accounting for capital structure and tax considerations.

Basic earnings per share rose to S$0.1101, a significant increase compared to S$0.0426 per share in the same period last year. However, the company did not declare any dividends for the half-year, maintaining the same stance as the previous year. This decision may reflect a strategic focus on reinvesting profits back into the business to support growth initiatives and enhance shareholder value in the long term. By retaining earnings rather than distributing them as dividends, Seatrium is positioning itself to fund future projects and expand its market presence, which could lead to greater returns for shareholders in the future.

As of June 30, Seatrium's net order book stood at an impressive S$13.3 billion, encompassing 24 projects with delivery schedules extending through to 2033. Notably, series-build projects accounted for over 95% of the order book, while lower-margin legacy non-FPSO (floating production, storage, and offloading) projects constituted less than S$140 million, or about 1% of the net order book. This shift towards higher-margin projects is indicative of the company’s strategy to enhance profitability and reduce reliance on less lucrative contracts. The focus on series-build projects suggests that Seatrium is capitalizing on economies of scale, which can further improve margins and operational efficiency.

The company has expressed its ambition to pursue a global project pipeline exceeding S$32 billion over the next 24 months, with opportunities spanning across oil and gas, offshore wind, and conversions. This diversified approach not only reflects the company's adaptability in a rapidly changing energy landscape but also positions it to capitalize on emerging trends in renewable energy and sustainable offshore solutions. The offshore wind sector, in particular, has gained significant traction as countries around the world increase their investments in renewable energy sources to meet climate goals, providing Seatrium with a timely opportunity to expand its portfolio in this area.

Chris Ong, the CEO of Seatrium, emphasized the significance of the solid H1 results, stating that they reinforce the company’s consistent progress towards building a resilient and more profitable organization. He highlighted the importance of disciplined execution and stronger margins as critical factors for long-term earnings resilience, particularly in an increasingly volatile macroeconomic environment. The CEO's remarks underscore the company's commitment to maintaining a strong operational focus while navigating the complexities of the marine and offshore industry.

Looking ahead, Seatrium anticipates that key margin drivers will continue to support its performance throughout the full year, aiming for progressive margin improvements. Coupled with one-off gains from asset divestments, the company expects its net profit for FY2026 to be materially higher than that of FY2025, which would mark a significant achievement in its financial trajectory. This optimistic outlook is supported by the company’s strategic initiatives and its focus on high-margin projects, which are expected to contribute positively to its bottom line.

Additionally, Seatrium's net asset value per share increased to S$2.17 as of the end of June, up from S$2.04 at the end of December. This growth in net asset value is a positive indicator of the company’s financial health and potential for future growth. An increasing net asset value can enhance investor confidence and attract potential investors looking for stable and growing companies in the marine and offshore sector.

Despite the positive financial results, shares of Seatrium experienced a slight decline of 1.9%, or S$0.04, closing at S$2.12 on Thursday. This decline may reflect market reactions to broader economic conditions or investor sentiment, which can often fluctuate independently of a company’s financial performance. Investors and analysts will be closely monitoring Seatrium's future performance, particularly as it navigates the complexities of the marine and offshore industry, which is influenced by global energy demand, regulatory changes, and technological advancements. Factors such as geopolitical tensions, supply chain disruptions, and shifts in energy policy can significantly impact the marine and offshore sector, making it crucial for Seatrium to remain agile and responsive to these developments.

In summary, Seatrium's impressive financial results for the first half of the fiscal year underscore its strategic focus on asset optimization and margin improvement. The company’s robust order book and ambitious project pipeline position it well for future growth, although it must remain vigilant in adapting to the evolving market dynamics of the marine and offshore sector. As the industry continues to evolve, Seatrium's ability to leverage its strengths while addressing emerging challenges will be key to sustaining its growth trajectory and delivering value to its stakeholders.