$Seatrium Ltd (5E2.SG)$ another good news for Seatrium. Mond...
$Seatrium Ltd (5E2.SG)$ another good news for Seatrium. Monday stock price will go up again ===>Seatrium wins $11 billion order from Brazil
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
Travelforfreedom : Yes looks like good news to drop the share again
not to spoil the party but it seems that either good or bad news doesn’t makes the share price flying 
Cyinsect Travelforfreedom : Agree
Travelforfreedom Cyinsect : Of course bro I hope I’m wrong
102660768 : From another perspective, a company major contracts/ revenue all from 1 same client…..
103509899 OP : so u mean just forget about this stock n concentrate on other stocks?
103509899 OP : see CHATGPT prediction ===>Seatrium's earnings for the second, third, and fourth quarters of 2024 are likely to show some improvement due to the robust order book, but the full impact of the recent $11 billion order from Petrobras might not be fully realized until 2025.
### Factors Supporting Improvement in 2024:
1. **Order Book Execution**: Seatrium's order book, which stood at over $20 billion as of early 2023, includes several ongoing projects. The completion and progressive milestones of these existing contracts are expected to positively influence revenue and earnings in the remaining quarters of 2024.
2. **Operational Efficiency**: The company has reported better cash flows and operational efficiencies following the merger with Keppel Offshore & Marine. This operational synergy is likely to enhance profitability in the short term.
3. **Improved Financial Position**: With a low net debt-to-equity ratio and substantial undrawn facilities, Seatrium has the financial flexibility to efficiently manage its project executions, which can lead to improved earnings.
### Factors Suggesting Full Impact in 2025:
1. **Project Lead Times**: Large-scale projects like the ones involved in the Petrobras deal often have significant lead times. The $11 billion contract will likely involve stages of design, procurement, and initial construction phases, with substantial revenue recognition occurring as milestones are achieved, which might extend into 2025.
2. **Revenue Recognition**: According to typical accounting practices in the engineering and construction sector, revenue from large contracts is often recognized progressively based on the completion of specific project milestones. Therefore, the full financial benefits of the new orders may not be completely reflected in 2024.
.