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Seatrium faces financial struggles with three consecutive years of losses

Seatrium, a Temasek-influenced Singapore entity from a Sembcorp-Keppel merger, reports 3 years of losses & a S$7M cap, risking SGX watch list status. Losses widened to S$1.9B in 2023.



Seatrium Limited, a prominent state-owned enterprise in Singapore, has reported three consecutive years of financial losses in its audited full-year consolidated accounts, a situation that could see the company placed on the Singapore Exchange (SGX) watch list.

The company, a result of the 2023 merger between Sembcorp Marine and Keppel Offshore & Marine, is currently under the significant influence of Singapore’s wealth fund, Temasek, which holds a deemed interest of 37.94% in Seatrium.

As of 8 April, Seatrium’s average daily market capitalisation over the past six months stood at S$7 million, significantly below the SGX’s threshold of S$40 million required to avoid watch list consideration.

This is a stark reflection of the company’s financial turbulence, underscored by a net loss of S$1.9 billion for the financial year 2023, widening from a loss of S$261.1 million the previous year.

The loss per share (LPS) for 2023 was reported at 3.12 cents, deepening from 0.83 cents in the prior year, despite a revenue increase to S$7.3 billion from S$1.9 billion in 2022.

According to SGX’s listing manual, companies that record pre-tax losses for three consecutive financial years and fail to maintain the required market cap are placed on a watch list.

Those listed have a 36-month window to rectify their financial standing to avoid delisting or suspension. SGX conducts quarterly reviews to identify companies for watch list inclusion, with the next review scheduled for the first market day of June.

Seatrium’s management has committed to making an immediate announcement should SGX notify them of impending watch list placement. This follows a drastic net loss reported for the second half of 2023, totaling S$1.7 billion, a significant increase from S$118.3 million in the same period of the previous year.

Also in the news, in February, Seatrium reached an in-principle settlement of payment of R$670,699,731.73 (approximately S$182.4 million) with the Brazilian Authorities in the ongoing Operation Car Wash investigations.

In March. two senior executives from Seatrium — formerly from Sembcorp Marine — along with a subsidiary, were charged with bribery allegations involving Brazilian officials, aimed at furthering their companies’ interests in South America.

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Another NOL ala Ng Yat Chung in the making?