Seatrium Ltd. Reports Widened Loss
Seatrium Ltd.'s second-half loss widened significantly due to higher project costs and the write-down of obsolete inventories. Despite this, the company saw a sharp rise in revenue due to strong project execution.
Loss and Revenue Figures
The net loss during the period was 1.68 billion Singapore dollars (US$1.25 billion), a significant increase from S$118.28 million in the same period a year earlier. Revenue also saw a substantial increase, reaching S$4.41 billion compared to S$852.23 million a year earlier. Seatrium attributed this growth to higher contributions from new contracts.
Share Consolidation Plan
On Monday, the rig builder announced plans for a reverse stock split with a 20-to-1 share consolidation. This move aims to increase market interest in the company's shares. Following the consolidation, there will be a total of 3.41 billion outstanding shares with no impact on the paid-up share capital of S$8.58 billion.
Reasoning Behind Share Consolidation
Seatrium stated that the share consolidation would help reduce price volatility in its shares, which are currently at a low price and susceptible to speculation and market manipulation.
Industry Outlook
"Looking ahead, the offshore & marine industry continues to be well supported by strong industry tailwinds arising from the global energy transition and energy security," Seatrium commented on future prospects.
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