Singapore-based offshore and marine giant Seatrium has officially released its 1H 2026 financial results, posting a standout performance. In the first half of this year, Seatrium achieved a net profit of SGD 373 million, a year-on-year surge of 158%. Even excluding gains from asset divestments, net profit stood at SGD 212 million, up 54% year-on-year, marking a qualitative leap in profitability. Seatrium explicitly stated that this key performance breakthrough signals the Group’s formal transition from the "recovery phase" to a new "value creation" growth cycle.

The efficient execution of projects on hand provided solid support for earnings growth. In 1H 2026, Seatrium recorded revenue of SGD 5.6 billion, up 4.7% year-on-year. Gross profit margin improved steadily from 7.4% in the same period last year to 8.6%, driven primarily by a higher proportion of value-added projects, lower indirect costs from enhanced production efficiency, and continued cost management and strategic asset divestments. Excluding divestment gains, 1H 2026 EBITDA reached SGD 479 million, a 20% increase year-on-year, underscoring sustained improvement in earnings quality.

As of June 30, Seatrium’s net order book stood at SGD 13.3 billion, comprising 24 projects, with delivery schedules extending to 2033, ensuring a robust backlog. With the successful completion of three legacy projects, low-margin non-FPSO legacy projects now account for only about 1% of the order book. Over 95% of orders are "series-built" projects, a standardised construction model that enhances project execution certainty and unlocks economies of scale. Major projects, including P-80 and P-82 FPSOs for Petrobras and the Shell Sparta FPU, are progressing as planned and are expected to sail away in the second half of 2026.

In terms of project pipeline, Seatrium disclosed that the total value of global project opportunities it can track over the next 24 months exceeds SGD 32 billion, comprising approximately SGD 21 billion in oil and gas, SGD 9 billion in offshore wind, and SGD 2 billion in ship conversion and upgrade segments, reflecting a diversified and promising market portfolio. Seatrium noted that Brazil remains the core market for deepwater FPSOs, while demand for newbuilds and conversions continues to heat up in Guyana, West Africa, and Southeast Asia. Leveraging its three shipyards in Brazil, the Group offers full-chain service capabilities that meet local-content requirements and is actively competing for new FPSO EPC contracts to further expand its market share.

LNG-related businesses emerged as a key growth highlight. Driven by global energy security needs and supply diversification, FLNGs and FSRUs have gained strong market favour due to their flexible deployment and rapid time-to-market. Seatrium, with its track record of delivering the world’s only two LNG carrier-to-FLNG conversion projects and commanding over 90% of the FSRU conversion market share, signed a new FSRU conversion contract in 1H 2026 and plans to leverage its proprietary FLNG-X design to capture further conversion and newbuild opportunities.

In offshore wind, Seatrium continues to strengthen its core competitiveness through integrated "from offshore to grid" solutions, including offshore substations, heavy-lift installation vessels, wind turbine installation vessels, and wind foundation installation vessels. While some final investment decisions on recent projects may be delayed, European grid upgrade plans and Asia-Pacific renewable energy targets are expected to sustain long-term demand for offshore wind infrastructure, with overall market prospects remaining solid.

Looking ahead to the full year, Seatrium said the key factors driving margin improvement in the first half are expected to persist, and with the contribution from asset divestment gains, the Group projects a significant year-on-year increase in net profit for 2026 compared to 2025. The Group will continue to focus on high-value-added project orders, optimise its cost structure, and strengthen operational execution to deliver sustainable long-term shareholder returns.

Seatrium CEO Chris Ong commented: "Amid heightened macroeconomic volatility, the Group has built resilience through rigorous execution and sustained margin improvement. The benefits of earlier structural cost optimisation have begun to translate into tangible profits. With abundant opportunities across global energy markets and Seatrium’s presence in each, we expect project final investment decisions to accelerate in the coming quarters. We are confident in achieving our steady-state development target by 2028 and in continuing to create value for shareholders."