Singapore shipyard group Seatrium is expected to return to profit for its first-half results.
In a filing on the Singapore Exchange before the market opened, Seatrium said the group is expected to report a net profit for the six months to June 30, based on a preliminary review of its unaudited financial results.
This follows the company witnessing a full-year loss of SGD 1.9bn ($1.4bn) in 2023.
The return to profit could be attributed to the company’s latest contracts, including a ship repair pact with Angelicoussis Group, as well as Petrobras ordering $8bn worth of floating production, storage and offloading vessels.
The group will be releasing its first-half results on 2 August before trading hours.
As a result of sharing its guidance, Seatrium’s shares subsequently surged by 8%, closing at $1.62.
Seatrium has also secured a three-year SGD 1.1bn ($820m) loan via subsidiary Seatrium Financial Services.
The committed global syndicated bank guarantee (BG) facility will see the support of a group of eight leading financial institutions.
DBS Bank and Standard Chartered Bank acted as the global coordinators for this BG facility, Seatrium said.
The BG facility, which comes with a flexible structure, will support the company’s “project needs for future business growth”.
Seatrium chief financial officer Adrian Teng said: “This SGD 1.1 billion syndicated BG facility will support Seatrium in meeting the bank guarantee requirements for future projects, strengthening our capital structure and laying the foundation for our long-term sustainable business growth.”
“Closing on this facility is the culmination of the collaborative efforts between Seatrium and its esteemed banking partners, demonstrating their trust and confidence in Seatrium’s strategic operating model and business outlook.”
DBS head of energy, renewables and infrastructure Kelvin Wong said: “Our long-standing partnership with Seatrium has allowed us to gain a deep understanding of their business needs, as well as their commitment towards being a sustainability leader in the global offshore, marine and energy industries.”
“We are pleased to be partnering Seatrium once again, this time as a global coordinator on this syndicated bank guarantee facility, which we believe will be instrumental in supporting their future growth objectives in the renewable energy sector. This is the latest in DBS’ efforts to enable the energy transition and create a greener future alongside our clients.”
In addition, Chow Wan Thonh, head of banking and coverage for Singapore and ASEAN at Standard Chartered Bank, said: “We are pleased to support Seatrium in its inaugural syndicated bank guarantee facility, which will help to further the group’s plans for expansion in future growth opportunities.”
