SG Movers for Thursday: Seatrium Ltd Was the Top Gainer
Generated by AI AgentWesley Park
Thursday, Jan 16, 2025 4:37 am ET1min read
SG--
Seatrium Ltd (SGX: S51) was the standout performer on the Singapore Exchange on Thursday, surging 4.08% to close at SGD 2.04. The company's strong performance can be attributed to several key factors that have contributed to its recent success.
Firstly, Seatrium has been actively buying back its shares, which is a positive signal to investors. This indicates that the company believes its shares are undervalued, driving up their price as demand increases. Additionally, Seatrium has reported strong order wins, with a net orderbook of c.S$20bn as of the end of March 2023. This provides good revenue visibility for the next three years and lifts the order book to c.S$20bn.
Secondly, Seatrium's net gearing has improved, indicating that the company's financial health has improved. This positive development, coupled with the offshore market's improvement, has benefited Seatrium. The market has shifted towards risk-sharing mechanisms in contract clauses and cash-flow neutral milestone payments, which has provided Seatrium with the flexibility to cherry-pick higher value-add projects.
Furthermore, Seatrium's management has expressed confidence in the company's earnings outlook, with a positive earnings turnaround driven by strong order wins. The company's successful project execution and deliveries have also contributed to its operational performance. Additionally, the integration synergies from the merger of Sembcorp Marine (SMM) and Keppel O&M (KOM) have created revenue and cost synergies, contributing to Seatrium's growth.
In conclusion, Seatrium Ltd's strong performance on Thursday can be attributed to its share buyback program, strong order wins, improved financial health, positive earnings outlook, successful project execution, and integration synergies. As the offshore market continues to improve, Seatrium is well-positioned to capitalize on the positive industry momentum and continue its recent success. Investors should keep a close eye on Seatrium Ltd as it continues to execute on its strategic initiatives and deliver strong financial performance.
Seatrium Ltd (SGX: S51) was the standout performer on the Singapore Exchange on Thursday, surging 4.08% to close at SGD 2.04. The company's strong performance can be attributed to several key factors that have contributed to its recent success.
Firstly, Seatrium has been actively buying back its shares, which is a positive signal to investors. This indicates that the company believes its shares are undervalued, driving up their price as demand increases. Additionally, Seatrium has reported strong order wins, with a net orderbook of c.S$20bn as of the end of March 2023. This provides good revenue visibility for the next three years and lifts the order book to c.S$20bn.
Secondly, Seatrium's net gearing has improved, indicating that the company's financial health has improved. This positive development, coupled with the offshore market's improvement, has benefited Seatrium. The market has shifted towards risk-sharing mechanisms in contract clauses and cash-flow neutral milestone payments, which has provided Seatrium with the flexibility to cherry-pick higher value-add projects.
Furthermore, Seatrium's management has expressed confidence in the company's earnings outlook, with a positive earnings turnaround driven by strong order wins. The company's successful project execution and deliveries have also contributed to its operational performance. Additionally, the integration synergies from the merger of Sembcorp Marine (SMM) and Keppel O&M (KOM) have created revenue and cost synergies, contributing to Seatrium's growth.
In conclusion, Seatrium Ltd's strong performance on Thursday can be attributed to its share buyback program, strong order wins, improved financial health, positive earnings outlook, successful project execution, and integration synergies. As the offshore market continues to improve, Seatrium is well-positioned to capitalize on the positive industry momentum and continue its recent success. Investors should keep a close eye on Seatrium Ltd as it continues to execute on its strategic initiatives and deliver strong financial performance.
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