Seatrium : Second Quarter 2024 Financial Results Financial Statement

SEATRIUM LIMITED

Registration Number: 196300098Z

CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2024 & RELATED ANNOUNCEMENT

TABLE OF CONTENTS
A.	Condensed interim consolidated income statement	1
B.	Condensed interim consolidated statement of	2
	comprehensive income
C.	Condensed interim balance sheets	3
D.	Condensed interim statements of changes in equity	4
E.	Condensed interim consolidated statement of cash flows	6
F.	Notes to the condensed interim financial statements	7
G.	Other information required by Listing Rule Appendix 7.2	25

SEATRIUM LIMITED

Registration Number: 196300098Z

UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024

1. CONDENSED INTERIM CONSOLIDATED INCOME STATEMENT

		Group
		1H 2024	1H 2023	+ / (-)
	Note	$'000	$'000	%
Revenue	3	4,014,744	2,885,511	39.1
Cost of sales	4	(3,867,402)	(3,035,896)	27.4
Gross profit/(loss)		147,342	(150,385)	n.m.
Other operating income, net	5	136,972	131,651	4.0
General and administrative expenses	6	(170,023)	(153,876)	10.5
Operating profit/(loss)		114,291	(172,610)	n.m.
Finance income	7	76,102	92,072	(17.3)
Finance costs	7	(132,524)	(158,730)	(16.5)
Non-operating items	8	307	-	n.m.
Share of results of associates and joint ventures, net of tax		14,713	(1,269)	n.m.
Profit/(loss) before tax		72,889	(240,537)	n.m.
Tax expense	10	(38,152)	(26,322)	44.9
Profit/(loss) for the period		34,737	(266,859)	n.m.
Profit/(loss) attributable to:
Owners of the Company		35,972	(264,374)	n.m.
Non-controlling interests		(1,235)	(2,485)	(50.3)
Profit/(loss) for the period		34,737	(266,859)	n.m.
Earnings per ordinary share (cents)	12
Basic		1.05	(9.40)*	n.m.
Diluted		1.05	(9.40)*	n.m.

n.m.: not meaningful

• With the completion of the share consolidation of every twenty (20) existing shares into one (1) consolidated share on 9 May 2024, prior year comparatives for earnings per share were restated per SFRS(I) 1-33 through retrospective application of the consolidation factor of 20 to the weighted average number of shares.

1

1. CONDENSED INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	Group
	1H 2024	1H 2023	+ / (-)
	$'000	$'000	%
Profit/(loss) for the period	34,737	(266,859)	n.m.
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Foreign currency translation differences for foreign operations	(10,878)	(7,515)	44.8
Net change in fair value of cash flow hedges	(66,848)	(14,899)	n.m.
Net change in fair value of cash flow hedges transferred to profit or loss	5,733	8,178	(29.9)
	(71,993)	(14,236)	n.m.
Items that may not be reclassified subsequently to profit or loss:
Net change in fair value of equity investments at fair value through other	2,265	(335)	n.m.
comprehensive income (FVOCI)
Other comprehensive income for the period, net of tax	(69,728)	(14,571)	n.m.
Total comprehensive income for the period	(34,991)	(281,430)	(87.6)
Total comprehensive income attributable to:
Owners of the Company	(31,483)	(279,300)	(88.7)
Non-controlling interests	(3,508)	(2,130)	64.7
Total comprehensive income for the period	(34,991)	(281,430)	(87.6)

2

1. CONDENSED INTERIM BALANCE SHEETS

		Group	Company
		As at	As at	As at	As at
		30-Jun-202431-Dec-2023	30-Jun-2024	31-Dec-2023
	Note	$'000	$'000	$'000	$'000
Non-current assets
Property, plant and equipment	13	4,001,562	4,081,038	442	604
Right-of-use assets	13	583,858	628,669	-	266
Investment properties		-	-	1,819	2,473
Investments in subsidiaries	14	-	-	8,338,428	8,227,199
Interests in associates and joint ventures		191,841	180,267	-	-
Other financial assets		100,025	114,605	-	-
Trade and other receivables		394,795	467,049	600,013	1,970,000
Intangible assets		4,161,482	4,215,383	133	133
Deferred tax assets		209,973	220,052	22,459	26,349
		9,643,536	9,907,063	8,963,294	10,227,024
Current assets
Inventories		217,966	192,116	-	-
Trade and other receivables		2,356,173	1,159,213	1,595,321	261,454
Contract costs		57,931	20,043	-	-
Contract assets		4,150,365	2,619,080	-	-
Tax recoverable		7,761	5,057	-	-
Assets held for sale		-	2,950	-	-
Other financial assets		27,894	51,279	-	-
Cash and cash equivalents		1,637,779	2,270,240	34,654	57,618
		8,455,869	6,319,978	1,629,975	319,072
Total assets		18,099,405	16,227,041	10,593,269	10,546,096
Current liabilities
Trade and other payables		4,725,728	4,136,950	96,955	63,643
Contract liabilities		1,374,503	433,757	-	-
Provisions		831,077	858,954	174,981	159,124
Other financial liabilities		32,228	16,159	-	-
Current tax payable		57,369	31,109	15,234	11,366
Interest-bearing borrowings	16	690,716	743,381	-	-
Lease liabilities		45,636	45,037	-	-
		7,757,257	6,265,347	287,170	234,133
Net current assets		698,612	54,631	1,342,805	84,939
Non-current liabilities
Deferred tax liabilities		86,765	98,399	-	-
Provisions		631,837	683,769	39,999	79,169
Other financial liabilities		4,615	73	-	-
Interest-bearing borrowings	16	2,752,905	2,273,791	-	-
Lease liabilities		459,609	488,723	-	-
Other long-term payables		31,303	1,377	-	-
		3,967,034	3,546,132	39,999	79,169
Total liabilities		11,724,291	9,811,479	327,169	313,302
Net assets		6,375,114	6,415,562	10,266,100	10,232,794
Equity attributable to owners of the
Company
Share capital	17	8,753,920	8,753,920	8,753,920	8,753,920
Other reserves		(131,825)	(58,913)	(31,097)	(25,640)
Revenue reserve		(2,264,409)	(2,300,381)	1,543,277	1,504,514
		6,357,686	6,394,626	10,266,100	10,232,794
Non-controlling interests		17,428	20,936	-	-
Total equity		6,375,114	6,415,562	10,266,100	10,232,794

3

1. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY

1. Statements of Changes in Equity of the Group

Attributable to owners of the Company

					Share-
		Reserve		Currency	based					Non-
	Share	for own	Capital	translation	payments	Hedging	Fair value	Revenue		controlling	Total
	capital	shares	reserves	reserve	reserve	reserve	reserve	reserve	Total	interests	equity
	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000	$'000
1H 2024
At 1 January 2024	8,753,920	(2,693)	(2,041)	(37,217)	(25,995)	11,279	(2,246)	(2,300,381)	6,394,626	20,936	6,415,562
Total comprehensive income
Profit/(loss) for the period	-	-	-	-	-	-	-	35,972	35,972	(1,235)	34,737
Other comprehensive income
Foreign currency translation
differences for foreign	-	-	-	(8,605)	-	-	-	-	(8,605)	(2,273)	(10,878)
operations
Net change in fair value of cash	-	-	-	-	-	(66,848)	2,265	-	(64,583)	-	(64,583)
flow hedges
Net change in fair value of cash
flow hedges transferred to	-	-	-	-	-	5,733	-	-	5,733	-	5,733
profit or loss
Total other comprehensive income	-	-	-	(8,605)	-	(61,115)	2,265	-	(67,455)	(2,273)	(69,728)
Total comprehensive income	-	-	-	(8,605)	-	(61,115)	2,265	35,972	(31,483)	(3,508)	(34,991)
Transactions with owners of the
Company, recognised
directly in equity
Purchase of treasury shares	-	(7,662)	-	-	-	-	-	-	(7,662)	-	(7,662)
Issue of treasury shares	-	274	-	-	-	-	-	-	274	-	274
Share-based payments	-	-	-	-	1,931	-	-	-	1,931	-	1,931
Total transactions with owners	-	(7,388)	-	-	1,931	-	-	-	(5,457)	-	(5,457)
At 30 June 2024	8,753,920	(10,081)	(2,041)	(45,822)	(24,064)	(49,836)	19	(2,264,409)	6,357,686	17,428	6,375,114
1H 2023
At 1 January 2023	4,074,215	(1)	(1,683)	(23,517)	(25,995)	29,524	-	(283,188)	3,769,355	19,036	3,788,391
Total comprehensive income
Loss for the period	-	-	-	-	-	-	-	(264,374)	(264,374)	(2,485)	(266,859)
Other comprehensive income
Foreign currency translation
differences for foreign	-	-	-	(7,530)	-	-	-	-	(7,530)	15	(7,515)
operations
Net change in fair value of cash	-	-	-	-	-	(15,239)	(335)	-	(15,574)	340	(15,234)
flow hedges
Net change in fair value of cash
flow hedges transferred to	-	-	-	-	-	8,178	-	-	8,178	-	8,178
profit or loss
Total other comprehensive income	-	-	-	(7,530)	-	(7,061)	(335)	-	(14,926)	355	(14,571)
Total comprehensive income	-	-	-	(7,530)	-	(7,061)	(335)	(264,374)	(279,300)	(2,130)	(281,430)
Transactions with owners of the
Company, recognised
directly in equity
Purchase of treasury shares	-	(149)	-	-	-	-	-	-	(149)	-	(149)
Issue of treasury shares	-	137	-	-	-	-	-	-	137	-	137
New shares issuance from	4,679,705	-	-	-	-	-	-	-	4,679,705	14,999	4,694,704
acquisition of subsidiaries
Total transactions with owners	4,679,705	(12)	-	-	-	-	-	-	4,679,693	14,999	4,694,692
At 30 June 2023	8,753,920	(13)	(1,683)	(31,047)	(25,995)	22,463	(335)	(547,562)	8,169,748	31,905	8,201,653

4

1. CONDENSED INTERIM STATEMENTS OF CHANGES IN EQUITY(Cont'd)

1. Statements of Changes in Equity of the Company

				Share-
				based
	Share	Reserve for	Capital	payments	Revenue	Total
	capital	own shares	reserves	reserve	reserve	equity
	$'000	$'000	$'000	$'000	$'000	$'000
1H 2024
At 1 January 2024	8,753,920	(2,693)	960	(23,907)	1,504,514	10,232,794
Total comprehensive income
Profit for the period	-	-	-	-	38,763	38,763
Other comprehensive income
Total other comprehensive income	-	-	-	-	-	-
Total comprehensive income	-	-	-	-	38,763	38,763
Transactions with owners of the Company, recognised
directly in equity
Purchase of treasury shares	-	(7,662)	-	-	-	(7,662)
Issue of treasury shares	-	274	-	-	-	274
Share-based payments	-	-	-	1,931	-	1,931
Total transactions with owners	-	(7,388)	-	1,931	-	(5,457)
At 30 June 2024	8,753,920	(10,081)	960	(21,976)	1,543,277	10,266,100
1H 2023
At 1 January 2023	4,074,215	(1)	960	(23,907)	1,484,498	5,535,765
Total comprehensive income
Profit for the period	-	-	-	-	64,751	64,751
Other comprehensive income
Total other comprehensive income	-	-	-	-	-	-
Total comprehensive income	-	-	-	-	64,751	64,751
Transactions with owners of the Company, recognised
directly in equity
Purchase of treasury shares	-	(149)	-	-	-	(149)
Issue of treasury shares	-	137	-	-	-	137
New shares issuance from acquisition of subsidiaries	4,679,705	-	-	-	-	4,679,705
Total transactions with owners	4,679,705	(12)	-	-	-	4,679,693
At 30 June 2023	8,753,920	(13)	960	(23,907)	1,549,249	10,280,209

5

1. CONDENSED INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
   Cash flows from operating activities: Profit/(loss) for the period Adjustments for:
   Finance income Finance costs
   Depreciation of property, plant and equipment, and right-of-use assets Amortisation of intangible assets
   Share of results of associates and joint ventures, net of tax Gain on disposal of property, plant and equipment, net Gain on termination of lease liabilities
   Gain on disposal of asset held for sale Changes in fair value of financial instruments Share-based payment expenses Provision for onerous contracts, net Write-back of provision for restoration costs, net Property, plant and equipment written off Write-down of inventories, net
   Impairment losses on trade receivables and contract assets, net Tax expense
   Operating profit before working capital changes
   Changes in working capital: Inventories
   Contract costs Contract assets Contract liabilities
   Trade and other receivables Trade and other payables Provisions
   Cash used in operations Interest income received Interest paid
   Tax paid
   Net cash used in operating activities
   Cash flows from investing activities: Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Proceeds from disposal of asset held for sale Purchase of intangible assets
   Acquisition of subsidiaries, net of cash acquired Dividend received
   Proceeds from capital reduction of associate Distribution from other investments Purchase of other investments
   Net cash generated from investing activities
   Cash flows from financing activities: Proceeds from borrowings Repayment of borrowings
   Purchase of treasury shares Payment of lease liabilities
   Net cash generated from/(used in) financing activities
   Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of the period
   Effect of exchange rate changes on balances held in foreign currencies Cash and cash equivalents at end of the period

6

Group
1H 2024	1H 2023
$'000	$'000
34,737	(266,859)
(76,102)	(92,072)
132,524	158,730
139,362	140,901
54,667	59,114
(14,713)	1,269
(34,774)	(3,200)
(1,747)	-

1. -
   (10,545) 32,791

1,931	-
69,935	-
-	(2,033)

154-

2,225 8,254

13,149	(985)
38,152	26,322
348,648	62,232
(28,075)	(135,738)
(37,888)	13,225
(1,530,435)	(42,226)
940,746	(125,067)
(1,094,625)	(332,252)
610,651	491,879
(163,987)	(17,339)
(954,965)	(85,286)
36,428	105,720
(98,262)	(131,677)
(17,710)	(21,950)
(1,034,509)	(133,193)

(67,947)	(50,203)
59,604	3,988
3,188	-
(505)	(91)
(359)	750,043
23,497	388
1,902	-
647	5,424

1. (20)
   19,922 709,529

1,538,003 273,503

(1,130,952) (581,875)

(7,662) (149)

(23,137) (26,997)

376,252 (335,518)

(638,335) 240,818

2,270,240 2,090,843

5,874 (1,254)

1,637,779 2,330,407

1. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

1. Domicile and activities
   Seatrium Limited is a company incorporated in the Republic of Singapore and has its registered office at 80 Tuas South Boulevard, Singapore 637051, and whose shares are publicly traded on the Mainboard of the Singapore Exchange. These condensed interim financial statements as at and for the period ended 30 June 2024 comprise the Company and its subsidiaries (together referred to as the "Group") and the Group's interests in associates and joint ventures.
   The principal activities of the Company are the provision of management services and investment holding. The principal activities of the Group are the provision of innovative engineering solutions to the global offshore, marine and energy industries.
2. Basis of preparation

1. Going concern basis of accounting
   The condensed interim financial statements have been prepared on a going concern basis, which assumes that the Group will be able to meet its debt obligations as and when they fall due within the next twelve months.
   During the current period, the Group registered negative operating cash flows of $1,034,509,000 for the six months ended 30 June 2024 (1H 2023: $133,193,000). Despite this, the Group recorded net current assets of $698,612,000 as at 30 June 2024 (31 December 2023: $54,631,000).
   The Group had secured $0.6 billion of refinancing and new committed loans, which aids the increment in net current asset position as at 30 June 2024. With more than $2.5 billion of cash and undrawn credit facilities available, the Group has adequate liquidity to settle current borrowings as they fall due.
   The Group is therefore confident that the continuing use of the going concern assumption in the preparation of the financial statements is appropriate.
2. Statement of compliance
   The condensed interim financial statements are prepared in accordance with Singapore Financial Reporting Standards (International) (SFRS(I)s) and IFRS Accounting Standards as issued by the International Accounting Standards Board. SFRS(I)s are issued by the Accounting Standards Council, which comprise standards and interpretations that are equivalent to IFRSs issued by the International Accounting Standards Board. All references to SFRS(I)s and IFRSs are referred to as SFRS(I)s in these condensed interim financial statements unless otherwise specified.
   The condensed interim financial statements for the six months ended 30 June 2024 have been prepared in accordance with SFRS(I) 1-34 Interim Financial Reporting. The condensed interim financial statements do not include all the information required for a complete set of financial statements. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and performance of the Group since the last annual financial statements for the year ended 31 December 2023.
   Except as disclosed in Note 2.3. below, the Group has applied the same accounting policies and methods of computation in the preparation of the financial statements for the current period as the most recent audited financial statements for the year ended, and as at, 31 December 2023.
   The condensed interim financial statements are presented in Singapore dollars which is the Company's functional currency. All financial information presented in Singapore dollars has been rounded to the nearest thousand ($'000), unless otherwise stated.

7

1. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS(Cont'd)

2.3. New and amended standards

The Group has applied the following SFRS(I)s, amendments to and interpretations of SFRS(I) for the first time for the annual period beginning on 1 January 2024:

• Amendments to SFRS(I) 16: Lease Liability in a Sale and Leaseback
• Amendments to SFRS(I) 1-7 and SFRS(I) 7: Supplier Finance Arrangement

The adoption of the above standards does not have any significant impact on the financial statements.

2.4. Use of estimates and judgements

In preparing the condensed interim financial statements, management has made judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates.

The significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those described in the last annual financial statements as at and for the year ended 31 December 2023.

3. Segment and revenue information

The Group has two reportable segments. They are: (i) rigs & floaters, repairs & upgrades, offshore platforms and specialised shipbuilding; and (ii) ship chartering. The business units are managed separately because of their different business activities. The results of all projects related to shipbuilding and repairs are reviewed as a whole and form the basis for resource allocation decisions of the shipyard activities.

Inter-segment sales and transfers are carried out on an arm's length basis. Segment assets consist primarily of property, plant and equipment, intangible assets, current assets and exclude inter-segment balances. Segment liabilities comprise mainly operating liabilities and exclude inter-segment balances. Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Chief Operating Decision Maker, which is defined to be the Group's CEO. Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries.

Other operations include bulk trading in marine engineering related products, provision of harbour tug services to port users, collection and treatment of used copper slag, and the processing and distribution of copper slag for blast cleaning purposes.

The Group operates in 20 (31 December 2023: 20) countries with its principal operation in the Republic of Singapore. In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of customers. Segment assets are based on the geographical location of the assets.

8

1. NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS(Cont'd)

3.1.	Operating segments
	(i) Business segments:	Rigs &
		floaters,
		Repairs &
		upgrades,
		Offshore
		platforms, and
		Specialised	Ship
		shipbuilding	chartering	Others	Elimination	Total
	1H 2024	$'000	$'000	$'000	$'000	$'000
	Revenue
	Sales to external parties	3,999,473	14,680	591	-	4,014,744
	Inter-segment sales	-	-	730	(730)	-
	Total	3,999,473	14,680	1,321	(730)	4,014,744
	Results
	Segment results	97,412	(4,048)	20,927	-	114,291
	Finance income	105,494	32	94,669	(124,093)	76,102
	Finance costs	(144,176)	(1,255)	(111,186)	124,093	(132,524)
	Non-operating items	307	-	-	-	307
	Share of results of associates and joint ventures,	268	-	14,445	-	14,713
	net of tax
	Profit/(loss) before tax	59,305	(5,271)	18,855	-	72,889
	Tax expense	(33,015)	(2,322)	(2,815)	-	(38,152)
	Profit/(loss) for the period	26,290	(7,593)	16,040	-	34,737
	Capital expenditure	65,792	2,921	-	-	68,713
	Significant non-cash items
	Depreciation and amortisation	184,352	8,268	1,409	-	194,029
	Changes in fair value of financial instruments	(2,046)	-	(8,499)	-	(10,545)
	Provision for onerous contract, net	69,935	-	-	-	69,935
	Property, plant and equipment written off	154	-	-	-	154
	Write-down of inventories	2,222	-	3	-	2,225
	Impairment losses on trade receivables and	12,278	-	871	-	13,149
	contract assets, net
	As at 30-Jun-2024
	Assets
	Segment assets	18,558,501	258,401	4,821,462	(5,948,534)	17,689,830
	Interests in associates and joint ventures	9,692	-	182,149	-	191,841
	Deferred tax assets	207,676	2,297	-	-	209,973
	Tax recoverable	7,761	-	-	-	7,761
	Total assets	18,783,630	260,698	5,003,611	(5,948,534)	18,099,405
	Liabilities
	Segment liabilities	12,799,539	105,760	4,623,392	(5,948,534)	11,580,157
	Deferred tax liabilities	85,491	-	1,274	-	86,765
	Current tax payable	50,482	3,509	3,378	-	57,369
	Total liabilities	12,935,512	109,269	4,628,044	(5,948,534)	11,724,291

9