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.
See also: Cosmosteel’s CEO Ong resigns after 3HA Capital offer declared unconditional
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.
