Sembcorp Marine ( (SMBMF) ) has released its Q4 earnings. Here is a breakdown of the information Sembcorp Marine presented to its investors.
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Seatrium Limited, a prominent player in the global offshore, marine, and energy sectors, specializes in providing innovative engineering solutions and operates primarily from Singapore. The company recently released its financial results for the full year ending December 2024, showing a significant turnaround with a reported profit of S$155.9 million compared to a loss of S$2.03 billion in the previous year. This improvement was driven by a 26.6% increase in revenue, reaching S$9.23 billion, and a notable reduction in general and administrative expenses.
Key financial highlights include a substantial revenue growth of 26.6% from the previous year, driven by strong performance in shipbuilding and repair services. The gross profit saw a dramatic reversal from a loss to a profit, and operating profit reached S$212.5 million. The company also benefited from a significant reduction in other operating expenses and a successful reversal of previous provisions related to legal and corporate claims, contributing positively to the bottom line.
Seatrium’s strategic focus on core assets and optimization of its operational footprint following a strategic review in 2023 has begun to yield positive results. The company’s efforts in managing costs and enhancing operational efficiency have resulted in a net positive cash flow from operating activities. While finance costs were slightly reduced, finance income saw a decline due to lower interest income from customers.
Looking ahead, the management remains cautiously optimistic with a robust liquidity position supported by significant cash reserves and undrawn credit facilities. Seatrium is well-positioned to continue its strategic initiatives and capitalize on growth opportunities in its core markets, while also addressing outstanding legal matters and potential operational challenges.
