Seatrium will not publish its full year results until February 26, but has already raised some concerns around its finances.
In its third quarter results, Seatrium said it expected a net loss for the 2023 financial year. The company has now said it expects a “material non-cash write down” this year, on “surplus non-core assets and excess and obsolete inventories”.
The result is that Seatrium has warned it faces “financial loss that is significantly higher than the previous year”.
The company did not specify particular areas where it expected the losses to arise.
On the positive side, Seatrium said that its financial and operational performance was improving. Management carried out a strategic review, dividing the business into core and non-core.
Writing down non-core assets, and writing off inventories, should improve Seatrium’s outlook and reduce expenses. As a result, the company expects “significant value creation in the medium to long term”.
Keppel O&M combined with Sembcorp Marine in February 2023, rebranding as Seatrium. Following the completion, the company launched a strategic review. The company has previously said it would deliver the results at a capital markets day in the first half of 2024.
Seatrium reported a S$264 million ($197mn) loss in the first half of 2023, with a free cash outflow of S$173mn ($129mn).
This year, Seatrium is due to deliver offshore power installations, two FPSO integrations and a topside integration, in addition to a train at Pluto LNG.