SINGAPORE-based shipbuilder Seatrium has turned around its first annual profit since 2017, with a 2024 full-year net profit of S$157m ($116m) on a 27% rise in turnover primarily driven by strong project execution and increased activity in the repairs and upgrades business.

The sharp reversal from a S$2bn loss in 2023, the year in which the long drawn-out merger between Keppel Offshore & Marine and SembCorp Marine was completed to create the current entity.

In addition to strong revenue growth from S$7.3bn to S$9.2bn, Seatrium also locked in S$15.2bn in new orders and is currently sitting on a decade-high orderbook of S$23.2bn. Of this, renewables and green projects amounted to S$7.9bn.

Overall, the group now has 27 projects with deliveries running out to 2031. These comprise mainly floating production storage and offloading projects as well as complex offshore engineering projects, including the P-series FPSOs that it has long built for Petrobras and high-voltage direct current offshore platforms for offshore wind projects such as the TenneT European 2GW grid.

Much better cash and operations management has also helped the previously struggling group to turn its fortunes with net debt falling 8% to S$689m and net leverage ration dropping to 1.1x from 3.2x as it deleveraged the balance sheet with non-core asset divestments and loan repayments.

Looking ahead, Seatrium said: “The need to address energy security while transitioning towards cleaner energy globally is likely to present significant market opportunities, despite near-term geopolitical volatility”.

The group said it would focus on oil and gas and renewables solutions, as well as maritime upgrades to capitalise on opportunities in the energy market.

“Looking ahead, Seatrium will continue to seek profitable growth in oil and gas, offshore wind, repairs and upgrades and new energies,” Seatrium concluded.