Seatrium’s reverse stock split of one share for every 20 shares go ex-entitlement on May 7, with the record date on May 8. This share consolidation was proposed back in February. Seatrium’s CEO Chris Ong Leng Yeow maintained the objective of the corporate action is to reduce volatility in the share price, increase market interest and improve the attractiveness of its listed shares.

Seatrium has changed the issuer name / code to SEATRIUM LTD (SGX:5E2) with effect from 2024-05-07 due to shares consolidation.

Ong was appointed as an executive director and CEO of Seatrium in February 2023 and was previously CEO of Seatrium Offshore Marine Limited (renamed from Keppel Offshore & Marine Ltd) from July 2017. He has also highlighted that last year the group undertook a capital structure and strategic review, where it took a hard look at its business focus, operational footprint, and assets.

He added that the review signposted how well-positioned Seatrium is to benefit from its deep customer relationships and derive synergies from an enlarged business footprint, operational scale, and enhanced capabilities. Ong relayed that this is demonstrated by the increase in its net order book to over S$16 billion with projects for deliveries till 2030, underpinning earnings visibility over the coming years.

On Apr 29, Seatrium also announced it would initiate a S$100 million share buyback programme to repurchase its shares from the open market, using existing cash reserves. The repurchased shares will serve various purposes within the company, including employee share plans and director fee payments, or they may be cancelled to enhance shareholder value.

Seatrium announced the move was on the back of its improved financial standing and its commitment to aligning with shareholder interests. The programme follows the guidelines of the share purchase mandate, approved by shareholders, allowing a buyback of up to 2 per cent of total issued shares. The duration of the buyback programme is contingent on share prices and may extend beyond a year.

The group’s key business segments include oil and gas newbuilds and conversions, offshore renewables, repairs and upgrades, and new energies. Emphasising sustainable solutions, the group is also actively contributing to the global energy transition and maritime decarbonisation efforts.

Ong also maintained that to future-proof the business, Seatrium is investing in training, digitalisation, and robotics as the next leap forward, including the use of AI-powered digital twin of its global yards augmented with real-time Internet of Things (IoT) to improve central planning and long-term productivity, design optimisation and prediction modelling, amongst other initiatives.

He added that public-private partnerships are vital in research and development in the industry, and that Seatrium will continue to strengthen its collaborations with leading research institutions and industry partners to explore new technologies and innovative sustainable solutions.