Seatrium says it has identified $300 million in annualised synergies and cost savings via standardised pricing with customers and reduction in overheads. It is also aiming for $200 million in procurement savings by managing a more efficient supply chain.
The company, formed via the merger of Sembcorp Marineand the offshore and marine unit of Keppel Corp, took a big writedown for its FY2023, so as to fresh up its balance sheet for growth this year onwards.
Net loss for the full year stood at $1.9 billion, compared to the $261 million recorded in FY2022. This was largely due to non-cash write-downs, provisions for contracts, legal and corporate claims, as well as merger expenses which amounted to $2 billion for FY2023.
CEO Chris Ong reiterates that the so-called "energy trilemma" is a $500 billion addressable market in the next five years Seatrium is aiming to win a share from.
Besides meeting renewed demand for traditional rigs, the company has been winning new orders in the transition to renewable energy. Its order book stands at around $16.2 billion.
