Seatrium Posts 158% Profit Jump as LNG Platform Orders Surge

Strong Execution Drives Triple-Digit Profit Growth

Seatrium recorded net profit of S$372.9 million for the six months ended June 30, up 158.3% year-on-year, according to the company. The result includes a S$172 million gain from divesting non-core assets. Stripping out that one-time item, underlying profit still climbed 54% to S$212 million, reflecting improved project margins and lower operating costs.

Revenue advanced 4.7% to S$5.6 billion. The oil and gas segment contributed S$4.2 billion, a rise of more than 15% from the prior year, underpinned by two floating production storage and offloading units for Petrobras in Brazil and two floating production units for BP.

CEO Chris Ong announced the company will initiate a second share buyback program once the current S$100 million exercise concludes. Seatrium has already repurchased S$90 million of its own stock.

Iran War Reshapes Gas Infrastructure Demand

Ong sees accelerating interest in floating liquefied natural gas platforms and floating storage and regasification units. The Iran conflict has tightened global LNG supply, pushing governments and utilities to prioritize energy security. FLNGs enable offshore gas extraction and liquefaction, while FSRUs convert stored LNG back to gas more quickly and cheaply than onshore terminals.

Seatrium is pursuing S$7 billion of FLNG conversion and new-build opportunities in Africa. In Asia-Pacific, the company has identified S$2 billion in potential FSRU conversion and powership contracts. Powerships are vessels fitted with onboard electricity generation equipment.

The company secured an FSRU conversion deal with Turkey's Karpowership in the first half. Ong said the contract "is not a one-off" and disclosed that Seatrium is evaluating six to nine FSRU tenders globally, though he declined to specify locations.

Order Book Hits S$13.3 Billion

Seatrium's net order book stood at S$13.3 billion as of June 30, comprising 24 projects scheduled for delivery through 2033. Series-build projects account for over 95% of the backlog, while lower-margin legacy work has shrunk to under S$140 million, or roughly 1% of total orders.

The company is chasing a global project pipeline worth more than S$32 billion over the next 24 months, up from a previous estimate of S$28 billion. That pipeline breaks down into S$21 billion in oil and gas, S$9 billion in offshore wind, and S$2 billion in conversions.

Ong noted that while the first half was "relatively quiet," Seatrium expects final investment decisions to pick up in coming quarters. The company is also exploring module fabrication work in Guyana, a fast-growing oil producer in South America.

Offshore Wind Softness Offsets Gains

Revenue from offshore wind fell 21% to S$0.9 billion in the first half, tempering overall top-line growth. Ong characterized offshore wind as a "long-cycle market" and said project timings have "temporarily slowed."

He expects momentum to return in 2027, supported by grid investment in Europe and an expanding pipeline in Asia-Pacific. Seatrium sees continued demand for high-voltage direct current and alternating current systems in Europe and Taiwan. The company is developing a floating wind semi-submersible foundation and validating the technology at a UK site to capture deeper-water opportunities.

Ong acknowledged that newer markets such as the Philippines offer prospects but remain "premature."

Outlook and Balance Sheet

Seatrium forecast that full-year 2026 net profit will be "materially higher" than 2025, including one-off divestment gains. Chief financial officer Stephen Lu highlighted strong institutional demand for the company's recent S$400 million bond issue, calling it "a clear signal of market confidence."

As of June 30, Seatrium held S$1.7 billion in cash against S$2.4 billion in borrowings. The company's shares closed 1.4% higher at S$2.15 on Friday.

Ong framed the results as a shift "from recovery to value creation," emphasizing earnings growth, cash generation, and scaling the series-build and adjacent services businesses. With oil and gas driving near-term visibility and gas infrastructure emerging as a strategic growth vector, Seatrium is positioning itself to capture a larger share of Asia's offshore energy buildout.