Seatrium H1 loss widens to S$264.4 million on higher operating costs

This comes after factoring in provisions for contracts and merger expenses related to its acquisition of Keppel Offshore & Marine (Keppel O&M), now known as Seatrium Offshore & Marine.

Notwithstanding provisions for contracts and merger expenses, its net loss for the period would have stood at S$33 million.

On Friday (Jul 28), the group said the higher costs recorded for some of its projects, professional fees, net finance costs and tax expenses were partially offset by increased contributions from its repairs and upgrades businesses.

Loss per share stood at S$0.0047 for the half year, up from S$0.0046 the previous year.

Revenue for H1 rose 163.5 per cent to S$2.9 billion, from S$1.1 billion a year earlier. This was mainly from a combination of “strong operational execution, achievement of production milestones, and initial contributions from new projects”, said Seatrium.

General and administrative expenses widened to S$153.9 million as opposed to S$58.4 million previously, after factoring in costs related to the group’s acquisition of Keppel O&M in February this year.

Finance costs nearly tripled to S$158.7 million from S$54.6 million in H1 FY2022, mainly due to higher interest expenses from increased borrowings.

Seatrium chief executive Chris Ong said that despite the H1 net loss, the group is working on key measures to bring it back to net profitability, such as streamlining its cost structure and finalising its ongoing capital restructuring.

The group said it expects to make a net loss for FY2023, although it anticipates continued improvements in its operational and financial performance.

Shares of Seatrium closed up 0.7 per cent or S$0.001 at S$0.146 on Thursday.