Seatrium allocates S$200 million for new share buyback programme
It will allow the company to repurchase up to a maximum of 2% of its total issued shares
[SINGAPORE] Seatrium’s new share buyback programme will be worth S$200 million – double the size of its previous one – in a move it says shows its confidence in its long-term outlook.
Seatrium CEO Chris Ong said in a bourse filing on Tuesday (Sep 22) that the company has a clear pathway for further growth, underpinned by strengthened fundamentals and margins, as well as a global pipeline of opportunities that it is pursuing.
The offshore and marine player’s previous buyback programme totalled S$100 million. It was announced in April 2024 and was completed on Sep 1 this year.
The new programme was first announced in July alongside Seatrium’s results for the first half of the year, though without a target value.
Funded by existing cash resources, the buybacks will be subject to shareholder approval at each annual general meeting. They will also allow Seatrium to repurchase up to a maximum of 2 per cent of its total issued shares.
The new programme will be executed progressively, said the company, taking into account prevailing share-price levels, market conditions and the group’s capital-management priorities.
Ong added: “We remain committed to disciplined capital allocation and returning capital to our shareholders to drive long-term total shareholder returns.”
Seatrium’s net profit surged 158.3 per cent to S$372.9 million in H1 ended Jun 30, boosted by a S$172 million gain from the sale of non-core assets. Excluding the one-off divestment gain, its H1 net profit rose 54 per cent year on year to S$212 million, on the back of higher-margin projects and productivity improvements that lowered costs.
In the results briefing, Ong had noted that the company made “strong progress” despite macroeconomic uncertainties.
Seatrium shares fell 3.3 per cent to close S$0.07 lower at S$2.05 on Monday.
