Seatrium, the Singapore shipyard group, has slumped to a full-year loss of SGD 1.9bn ($1.4bn) after a series of huge write-downs.
The SGX-listed company reported SGD 2bn in asset write-downs, provisions for contracts, legal and corporate claims and merger expenses.
Seatrium, which was formed by last year’s merger of Sembcorp Marine and Keppel Offshore & Marine, said revenue for 2023 increased three-fold to SGD 7.3bn.
The group’s net orderbook stands at SGD 16.2bn, of which 39% is for renewables and cleaner/green solutions, following the addition of orders worth SGD 4.5bn in 2023 and so far in 2024.
During the year, Seatrium said it strengthened its balance sheet with a stronger liquidity position and improved debt maturity profile.
“The group proactively secured over SGD 3.5bn in new loans, refinancing and trade financing, including over SGD 2.5bn in green or sustainability-linked facilities,” it said.
“In addition, the group collected almost SGD 1bn in receivables from Borr Drilling two years ahead of time and increased its cash holdings to over SGD 2bn, with undrawn committed credit facilities of over SGD 1bn.”
Seatrium also announced that it had reached settlement agreements with the Brazilian authorities in relation to the Operation Car Wash anti-corruption probe, amounting to a settlement payment of SGD 182.4m, subject to post-closing compliance obligations.
It has also made an SGD 82.4m provision for indemnity to Keppel Corp in relation to this matter.
“The in-principle settlement agreements with the Brazilian authorities allow us to move forward as a new organisation committed to the highest standards of governance,” said Seatrium CEO Chris Ong.
Seatrium said the offshore and marine industry continues to be well supported by strong tailwinds arising from the global energy transition and energy security.
“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,” it said.
As part of its capital structure review, Seatrium announced that it will undertake a 20:1 share consolidation exercise to “increase market interest and attractiveness in its listed shares”.
Seatrium operates shipyards and other facilities in Singapore, Brazil, China, Indonesia, Japan, the Philippines, Norway, the UK and the US.
