Seatrium’s orderbook hits decade high as new contracts surge

Announcing its first half financial results Seatrium said its net orderbook stood at SGD26.1 billion having risen some 61% since the end of 2023. The company said that the orderbook represented its highest in a decade – Seatrium was formed in 2023 through a merger of Keppel Offshore & Marine and Sembcorp Marine so pre-2023 the orderbook would have been a combination of the two groups contracts.

The orderbook provides work through to 2031.

“Our strong order backlog, comprising 32 projects with deliveries till 2031, will underpin our revenue visibility for the next few years, supported by our One Seatrium Global Delivery Model which enables us to scale our business,” said Chris Ong, CEO of Seatrium.

Following the merger the yard group has centralised engineering and integrated technology resources to closely coordinate operations across different yards globally.

Seatrium has been targeting the offshore renewables and green solutions sector which now accounts for around SGD9.3 billion, or 35%, of its orderbook.

Looking at the repairs and upgrades business Ong said that in the first half of 2024 the group had complete 130 upgrade, repair and conversion projects bringing in SGD517 million in revenue. Seatrium has signed 22 longer term contracts, which it describes as favoured customer contracts (FCCs), with clients committing to do work at its yards.

Related:Seatrium bags $134 million in repair and upgrade contracts

“FCCs facilitate forward capacity planning, joint value creation and support a steady flow of Repairs & Upgrades orders that contribute towards a recurring revenue base. Every docking space in our shipyard is valuable, and forward planning allows us to plan ahead for future projects,” Ong said.

The first half of 2024 saw Seatrium book its first profit since its formation. Net profit in H1 2024 was SDG115 million reversing a net loss of SGD264 million in the first half of the previous year.

Ong said that Seatrium was well positioned to benefit from the upturn in the offshore industry but its financial results for the full year will also depend on execution of its legacy projects.