By P.R. Venkat
Seatrium Ltd.’s second-half loss widened significantly due to higher project costs and the write-down of obsolete inventories but its revenue rose sharply due to strong project execution.
Net loss during the period was 1.68 billion Singapore dollars (US$1.25 billion) compared with S$118.28 million in the same period a year earlier, with revenue at S$4.41 billion, sharply higher from S$852.23 million a year earlier, which Seatrium attributed to higher contributions from new contracts.
The rig builder also said Monday that it plans a reverse stock split with a 20-to-1 share consolidation to increase the market interest’s in the company’s shares.
After the share consolidation, there will be 3.41 billion total outstanding shares with no impact on its paid-up share capital of S$8.58 billion.
The company said the share consolidation would help reduce price volatility in its shares, which are currently at a low price and are prone to speculation and market manipulation.
“Looking ahead, the offshore & marine industry continues to be well supported by strong industry tailwinds arising from the global energy transition and energy security,” Seatrium said.
Write to P.R. Venkat at venkat.pr@wsj.com
Read the full article here
