Seatrium (5E2) Q3 2025 TU earnings summary

Executive summary

• Maintained strong operational momentum in 3Q 2025 with robust project execution, including delivery of WTIV Charybdis, HVAC offshore substations for Greater Changhua 2b and 4, and completion of 47 repairs & upgrades.

• Net order book reached SGD 16.6 billion, covering 24 projects with deliveries through 2031, providing revenue visibility above 1.5x trailing 12-month revenue.

• Strategic focus on operational efficiency, cost optimization, and divestment of non-core assets, including surplus yard and vessels for over SGD 140 million, to enhance margins and reduce costs.

• Disciplined approach to contract terms post-merger, with milestone payments and risk-adjusted margins in the mid-teens.

Financial highlights

• Net order book at SGD 16.6 billion, excluding R&U, ensuring near-term revenue visibility.

• Secured new orders, including a SGD 94 million FLNG upgrade and high-value repairs & upgrades totaling SGD 170 million.

• Margins more than doubled in 1H 2025 versus 1H 2024, driven by higher-margin projects and cost optimization.

• Cost of debt decreased in the last quarter due to lower risk-free rates and improved credit profile.

Outlook and guidance

• Pipeline of targeted future projects stands at SGD 30 billion, split SGD 19 billion oil & gas and SGD 11 billion offshore wind, mainly in Europe and Asia.

• Confident in achieving 2028 revenue target of SGD 10–12 billion, supported by diversified project pipeline and ongoing cost initiatives.

• Committed to profitable growth via series-build projects, execution excellence, and productivity improvements.

• Will provide further guidance on financial impact of WTIV Sturgeon arbitration as visibility improves.