Seatrium Limited booked net profit of S$373 million for the six months ended Jun 30, an increase of 158 year-on-year, as wider project margins and one-off divestment gains lifted the bottom line.

Seatrium stock jumped over 3% on the news.

The marine and offshore engineering group’s revenue rose 4.7 YoY to S$5.6 billion, while gross margin improved to 8.6 per cent from 7.4 per cent a year earlier. Earnings before interest, tax, depreciation and amortisation (EBITDA), excluding divestment gains, grew 20 per cent to S$479 million. The company did not declare any interim dividend.

Margin expansion stemmed from a richer mix of higher-value contracts and lower indirect overheads after cost-optimisation measures and strategic divestments. More than 95 per cent of the S$13.3 billion order book now comprises repeat “Series Build” projects such as the Petrobras P-80 and P-82 FPSOs and Shell’s Sparta floating production unit, all slated for sail-away in the second half of 2026. Legacy non-FPSO projects account for about 1 per cent of outstanding work, down from 3 per cent at end-2025.

Seatrium continues to face a volatile macroeconomic backdrop and residual exposure to lower-margin contracts, although management said disciplined execution and a shrinking legacy portfolio are helping protect profitability.

To drive growth, the group is pursuing more than S$32 billion of potential orders over the next two years, split across oil and gas (about S$21 billion), offshore wind (about S$9 billion) and vessel conversions (about S$2 billion). Repairs and upgrades remain a steady contributor, with management highlighting demand from LNG carriers, FSRUs, cruise ships and naval assets. In Brazil, where Seatrium operates three yards, the company intends to bid for upcoming full EPCC FPSO projects, while its proprietary FLNG-X design and track record in LNG carrier-to-FLNG conversions position it for future gas projects.

Chief executive Chris Ong said the first-half performance underscored efforts to build “a resilient and more profitable Seatrium.” He attributed the earnings surge to disciplined execution, structural cost savings and a higher-margin project mix, and noted that final investment decisions in key energy markets are expected to gain momentum in coming quarters. Ong added that Seatrium is “on track” to meet its 2028 steady-state targets and forecast that full-year 2026 net profit will be “materially higher” than the previous year, supported by sustained margin improvements and one-off divestment gains.