Seatrium Limited

First-half 2026 revenue increased 4.6% to $5.6 billion, or 5% as stated by management, with gross profit margin up 120 basis points to 8.6% from 7.4% a year ago. Net profit rose 158% to $373 million, and excluding divestment gains NPAT was up 54% to $212 million; EBITDA excluding divestments rose 20% to $479 million. Revenue by segment included Oil & Gas up 15% to $4.2 billion, Offshore Wind down 21%, Repairs & Upgrades broadly flat, and Other down 17%. Management said the net order book was about $13.3 billion/$13 billion, liquidity was $3.4 billion in cash and undrawn committed facilities, net leverage was 0.5x, and net gearing was 0.1x. For cash flow, operating cash flow excluding a one-time legacy payment was $114 million, reported OCF was $41 million after a $73 million car wash final settlement payment, CapEx was $52 million, divestments unlocked $167 million, and free cash flow was $237 million excluding the settlement. Forwardly, management reiterated FY2028 steady-state targets of $10 billion to $12 billion of annualized revenue and 8%+ ROE, said full-year 2026 should be stronger, and noted the $50 million annualized divestment-related OpEx savings should flow through in second half 2026.

Chris Ong framed the quarter as proof that Seatrium is moving from recovery to value creation, with emphasis on margin expansion, cost optimization and a higher-quality project mix. He repeatedly stressed that the company is active across a global $32 billion pipeline, but that FID timing—not demand—is the main issue, especially in FPSOs, LNG conversions and offshore wind. His tone was confident and strategic, highlighting competitive strengths in Brazil, FSRU/FLNG conversions, and repairs and upgrades, while saying the company is focused on winning the right work rather than growth at any cost.

Stephen Liu focused on financial execution: gross margin rose to 8.6%, G&A stayed around 3% of revenue, and NPAT excluding divestments increased 54% to $212 million. He said divestments drove $172 million of pretax gain, with about $10 million of the run-rate savings recognized in 1H and the full $50 million annualized benefit expected in second half 2026. On cash, he highlighted $114 million of operating cash flow before the $73 million settlement, $52 million of CapEx, $167 million from asset sales, and $237 million of free cash flow excluding the settlement. He also pointed to a $3 billion multicurrency debt program, a first $400 million note due 2031 at 2.95%, and strong liquidity of $3.4 billion.

Analysts pressed on Petrobras BOT versus EPC tendering, asking how Seatrium will compete and whether direct bidding overlaps with subcontracting; management said the core value is still the EPC scope, and BOT mainly changes structure and partner relationships rather than the underlying technical work. Questions also focused on the $32 billion pipeline, the 6 to 9 FSRU tenders mentioned, and whether order book projects can accelerate; management said timing is customer-driven, but milestone-based contracts allow earlier payment if work fronts are ready. Analysts asked about the ship chartering impact after the Aquarius Brasil sale, and CFO clarified that once the transaction closes there will be no ship chartering business left, though the economic value will be received in stages over roughly 2 years. On Repairs & Upgrades, management said cruise, naval, drilling-rig and Brazil work should support a stronger second half, with margins better than EPC.