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Seatrium divests $155.4 mil of non-core assets, expects $50 mil in annualised cost savings

The Edge Singapore
The Edge Singapore  • 2 min read
Seatrium divests $155.4 mil of non-core assets, expects $50 mil in annualised cost savings
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Seatrium has made a series of divestments of non-core assets totalling $155.4 million which it says will help achieve some $50 million in annualised cost savings with better streamlined operations.

The company expects to make further divestments down the road.

According to Seatrium on Feb 23, the cost savings expected will also take into account savings from recent divestments of the AmFELS yard in Texas and the GNL Platform Supply Vessels disclosed earlier.

In January, it sold 17 tugboats in Singapore for $104 million to KST Maritime. Alongside the sale, Seatrium has signed a towage services agreement to provide tugboat towage services to Seatrium’s Singapore-based shipyards.

"This ensures continuity of such towage requirements and enables towage costs to evolve to an outsourcing model that is expected to offer long-term cost efficiencies," says Seatrium.

The company has also sold its Can-Do 2 floating dock at Crescent Yard for $16.9 million. The dock is to be scrapped, and following which, Seatrium says it can thus save on vessel-related licence fees, insurance and other operating expenses.

See also: Nam Cheong secures US$64.5 mil newbuild OSV contracts

Last December, Seatrium sold its Karimun Yard on Indonesia's Karimun Island for $22 million to a related party of the Salim Group. Following this divestment, Seatrium is focusing its yard footprint in Indonesia within its larger yard on Batam.

Last but not least, Seatrium expects to complete the sale of its Crescent Yard in Singapore for $12.5 million to Mooreast Holdings.

Seatrium shares closed at $2.16 on Feb 20.

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