Seatrium Ltd

Good morning, everyone. Thank you for joining us at CTRIM's full year 2025 results briefing. My name is Amelia and I take care of investor relations for CTRIM. This morning, we have with us our CEO, Mr Chris Ong, CFO, Dr Stephen Liu. Chris and Stephen will bring us through a short presentation before we open the floor to questions. Chris, please.

Thank you, Amelia. Good morning and thank you for joining us today at CTRIM's full year 2025 results briefing. Before I start, I'd like to wish everybody a very happy and a healthy Lunar New Year. Good year ahead. I'm pleased to report a strong set of results in our second full year since merger with robust revenue growth driven by strong project progress and doubled the net profit that is an undeniable reflection of our laser-sharp focus on driving margin efficiencies and execution. For the first time, we have recorded a positive one-year total shareholder return of 5.2% as we strive to continue driving lasting value for all shareholders on strengthened fundamentals. Our strong performance also comes on the back of heightened geopolitical and macroeconomic uncertainties that companies around the world had to grapple with. Despite some delays in investment decisions in several markets in the first half of 2025, we still secured over $4 billion of new orders in FY 2025. This replenished our net order book that stands strongly at $17.8 billion as of 31 December 2025. Meanwhile, we are actively pursuing more than $32 billion in pipeline deals, which reflect sustained investments by our customers to meet growing energy demand that is fueled by technological advancements, including AI. Third, we are today stronger and leaner than before. We have spent the last few years transforming our business and cost model, the way we work and the way we do business. 95% of our net order book today is made up of series-built projects that offer lower execution risks for both ourselves and our customers. Non-FPSO legacy projects, which are relatively lower margin and higher risk compared to post-merger contracts, now constitute just over 1% of our net order book. We have also achieved our synergy and cost-saving targets, accelerated non-core divestment to reduce overheads, and importantly, brought closure to operational car wash in FY2025. This allowed us to move forward with greater clarity and step forward with larger strikes as we leave legacy issues behind us. Today, these achievements reflect the merits of our strategy and that we are ready to build real sustainable momentum for the future. Turning to our financial performance, we delivered a second consecutive year of strong top-line growth, with revenue growing 24% to $11.5 billion from $9.2 billion a year ago. This reflects the strength of our order book and the disciplined execution that continues to drive reliable delivery to our customers. Net profit came in at $324 million, more than doubled of $157 million in FY2024, outpacing revenue growth and underscoring the strong progress that we are making in expanding margins, which Stephen will talk about in greater detail. Our progress is best reflected in how we execute for our customers. Let me now highlight two projects that showcase the power of our one-citroen global delivery model. First, FPSO P78. We have achieved first oil in record time on 31st of December 2025, and first gas is expected in first Q2026. Being built across our yards in Brazil, China and integrated in Singapore, this accelerated progress is a strong testament of our one-seater global delivery model and also showcases the expansion of our end-to-end delivery capabilities, from engineering to offshore commissioning. P78 is the first of six advanced greener P-series FPSOs, and it sets a strong benchmark for subsequent units. Next on Empire Wind. The project is now over 97% complete and is situated on-site in the US, on track for delivery this year. Once operational, it will deliver 810 MW of clean energy to New York, enough power to power more than 500,000 homes. Both the top sights and jacket were built across our Singapore and Batam yards, demonstrating our integrated delivery capability. The remaining exposure in our net order book to the US offshore wind has reduced to less than $10 million, with Empire Wind and offshore substation for Austec very close to completion. The WTIV for MERS offshore targeted to complete end of the month. In fact, We are in discussion to deliver her within the next few days. Our future is taking shape with clarity. Strong order book today for near-term earning visibility and a resilient pipeline that sets us up for sustained growth tomorrow. We have been disciplined in ensuring we win high-quality contracts with world-class customers. We meet teams' risk-adjusted project margins and progressive milestone payments. Our ability to win these projects reflect the strong trust customers place in us across conventional energy and renewables. Amidst a tough macro environment, we secured over $4 billion of new orders, supported by returning customers and new partnerships. This includes our first collaboration with PentaOcean Construction, marking our entry into the Japanese offshore wind market. And Baldwin 5, our fourth 2GW HVDC project with Tenet, and our first for Germany under the 2GW program. Next, our net order book of over $17 billion is equivalent to over 1.5 times of our very strong FY2025 revenue. 6P Series FPSO, Three US-bound FPUs and major HVDC and HVAC platforms are all progressing well, demonstrating the strength and depth of global delivery model. We have been transparent about the challenges we face from non-FPSO legacy projects, which now constitute just over 1% of our net order book. In the same spirit of transparency, we also like to share that the delivery of naval project Napan has been delayed to 2027 instead of the original 2026 schedule. We are working closely with the customer to navigate this specialised shipbuilding project to manage execution risks. With a declining proportion of lower-margin non-FPSO legacy projects, we expect an improving mix of higher-margin post-merger contracts, and a reducing trend of provisions moving ahead. Moving ahead, we still see ample market opportunities as we actively pursue $32 billion in the pipeline deals. Despite the lower oil price environment, it is widely established that the break-even price of deepwater fuels remain well below prevailing oil prices. Alongside strong demand for energy, the ongoing energy transition and the need For energy security, especially in Europe, where we have seen some favourable wind developments for offshore wind, this gives us a long runway to capture high-value work across the full energy spectrum. We have been asked how are we positioned competitively to capture a good share of these pipeline opportunities. Despite being just formed three years ago during the merger, we have under our belt 60 years of proven track record, and a unique ability to deliver projects with consistent safety standards and quality across a large global manufacturing footprint that presents scalability, geopolitical diversity, and some cost arbitrage opportunities. These are not competitive levers that many players around the world have, but we do not ever stop evolving. We have been in business for over 60 years. We are not new to change. We are still standing strong today because we have successfully evolved alongside the industry, which is essentially critical now as the whole world is in transition towards cleaner energy sources. This is only possible with robust capabilities in technology development, where we take a practical market-led approach to innovation to stay ahead and maintain our long-term competitive edge. Today, we own proprietary designs such as FlexHow that we are already using in active FPSO tenders to sharpen our competitive edge, where proposed designs are evaluated as part of the bid. We also develop our own designs for FLNG and off-road substation, which has recently attained AIP. Longer term, we are also developing solutions for floating wind and other emerging energies to ensure we remain ahead of the curve. Our series-built approach, design once, build many, reduces execution risks, shortens schedules, and improves margins, ensuring projects are delivered safely, on time, on quality, and within budget. Today, about 95% of our net order book comprises series-built projects, underscoring the strength and scalability of this approach. On top of the existing franchises in grey, where we established the series build strategy. We're expanding this to powerships where we see strong potential, as well as applying the same principle to FSU-FSRU conversion, especially since we already done 90% of the world's FSU-FSRU conversion, which is an unparalleled track record worldwide. Last August, we signed an LOI with a long-term partner, Car Powership, for the integration of four new generation powerships, plus the option for two more. A strong endorsement of our capability and scalability in this adjacent segment. Integration works will start first Q2027. The LOI also includes conversion, life extension and repairs of three LNG carriers into FSRUs. These are examples of higher value work that we are refocusing our repair and upgrade business on. These capabilities and high value franchises will position us well for the next wave of opportunities. Our $32 billion opportunity pipeline over the next 24 months is diversified across segments, geography and asset types, some of which offer distinct market cycles for business resilience. Many of these opportunities are also aligned to our series-built franchises. Over the next 24 months, we are pursuing $23 billion in oil and gas opportunities driven mainly by America's region. We still see strong opportunities in Brazil where our long-term customer has disclosed his pipeline for the next five years. This is also where we have strong leadership for local content through our three established yards. We are also well positioned in Guyana for high value integration work and topside fabrication, where we have participated in all of the FPSO work for the Starbrook block so far. Apart from the usual opportunities that the market expects, we are also pursuing opportunities in FLNGs and fixed platform in the Middle East and Africa region, and to a smaller extent in Europe and Asia Pacific. For offshore wind, Europe remains the largest and the most developed market driven by its energy security needs. Tenet continue to be an important customer for us as we pursue opportunities in both Netherlands and Germany. With the award of Boeing 5, it demonstrates Tenet's confidence in our ability to deliver and we are ready to scale up and take on more HPDC projects when the opportunity arises. Meanwhile, we will also continue to pursue opportunities from other European TSOs as well as HVAC deals in Asia. We have also identified $2 billion in conversion opportunities such as those with car powerships that I mentioned earlier. All in all, we are well positioned and confident in our ability to capture a healthy share of these pipeline opportunities that will fuel our ability to deliver consistent performance. I shall now hand over to Stephen to bring you through the financial review.

Thanks, Chris. Next, I'll dive deeper into our financial performance for FY 2025 and highlight the progress that we have made to shape a stronger, leaner, and more competitive CITRM. We delivered a set of solid numbers for 2025. The 25% rise in revenue was driven by a steadfast execution of a healthy, well-diversified order book, which provides strong visibility and resilience amid the evolving market conditions. Our gross margin, which I think is a reflection of the true operational performance, has more than doubled to 7.4% in FY 2025 from 3.1% last year. We'll continue to make significant progress in streamlining G&A expenses and lowering finance costs. As a result, net profit has also doubled to $324 million in FY 2025, up from $157 million in FY 2024. We also saw operating cash flow grow by about 4.5 times to $440 million from $97 million, excluding one-off payments relating to legacy issues. And, on the same basis, FCF doubled to $443 million. After taking into account these one-off payments, we still generated almost 46% more cash from operations year-on-year of $142 million from $97 million a year ago. We have also taken decisive steps to streamline our asset base by divesting non-core assets. This disciplined approach sharpens our focus, enhances operational and cost efficiencies. Diving straight into the key revenue growth drivers, the 24% growth year-on-year was mainly driven by a strong progress registered by both the oil and gas and offshore wind segments. Revenue from oil and gas solutions grew 24% to $8.1 billion, underpinned by steady execution, progressive revenue recognition of the six new-build Petrobras FPSOs. notably P84 and 85 which commenced work in the second half of 24. offshore wind solutions also increases revenue to 2.1 billion driven by our three tenant two gigawatt HVDC platform projects the repairs and upgrade business registered lower volume and revenue due mainly to trade related uncertainties and weaknesses in the LNGC market We are, however, continuing to focus the business towards higher value projects such as FSRU conversions and the integration of power ships that Chris mentioned earlier. In the meantime, our 23 long-standing strategic partnerships with large global customers continue to provide a steady base load revenue of a more recurring nature. In the other segments, increased contributions from specialized shipbuilding, chartering, as well as rig kit sales and MRO projects delivered through CETRIM Offshore Technology, or SOT, led to a 55% jump in revenue. While this business is small today, SOT capitalizes on our unparalleled track record and rigs expertise to monetize proven design IPs. It delivers a healthy margin and we see growth potential ahead. Next, let's take a look at gross margin. Year-on-year, gross profit increased to $848 million in FY 2025 from $291 million. And gross margin increased sharply by 430 bps to 7.4%, driven by an improved mix of higher margin projects, higher asset utilization, improved productivity, as well as cost discipline. This was partially offset by provisions to the US projects, where the final project was delivered subsequent to year-end, and a little bit for Manapan, which Chris mentioned earlier. Other operating income was lower in FY2025, mainly due to a one-off provision relating to the Emerald Tea Yard restoration before its return to authorities in 2028. net FX movement, lower scrap sales, and a non-recurring settlement gains that was recognized in 2024. G&A expenses as a percentage of revenue declined by 50 basis points to 3%, compared to 3.5% in FY 2024, as we benefited from the continued cost optimization activities. Net finance costs also dropped by 18%, driven by debt repayment and lower financing costs, offset by a decreased interest and dividend income from equity investments such as the Gola-Healy, which we divested in 2024. Overall, net profit more than doubled to $324 million in FY 2025 from $157 million in FY 2024, underscoring the significant uplift in our core performance, powered by revenue growth, stronger margins, sustained cost optimization, and disciplined execution. As mentioned, we also reported much stronger cash flows in FY 2025, which is the reflection of the discipline that goes into ensuring that all our projects are on our progressive milestone payment terms and robust project cash flow management throughout each project. Consequently, operating cash flow increased to 142 million in FY 2025 from 97 million. Excluding the effect of one-off legacy payments, operating cash flow rose 4.5 times to 440 million, reflecting the level of cash generation that we expect moving forward. Investing cash flow was largely neutral, with 122 million of project and safety-related capex such as that for Batam Yard to prepare for the 2GW HVDC projects, balanced by asset divestment proceeds. We will continue to be measured in our capital expenditure, which is mostly focused on investments that will enable growth. All in all, we generated $443 million in free cash flow, excluding one-off legacy payments, This is more than double that of FY 2024, and we are confident in the execution and the cash flow of our post-merger contracts. Moving on to capital structure. We continue to adopt a prudent and disciplined approach to enhance resilience and afford us the financial agility to position for growth. Our gross debt decreased 5% year-on-year to $2.5 billion as at end December 2025. And through active refinancing, our cost of debt has declined from 4.9% at end December 2024 to 3.4% at end December 2025, driven both by lower base rates and tighter margins. We continue to broaden our funding sources and leverage our improved credit profile to secure favourable refinancing outcomes. Our liquidity position remains strong, with $3.1 billion in cash and undrawn committed facilities giving us ample headroom to support operations, pursue growth opportunities and other capital allocation requirements. In summary, our balance sheet remains robust, with a low net leverage ratio of 0.8 times and the net gearing of 0.1 times as at 31st December 2025. With the FY 2025 performance covered, I'd like to touch on the efforts that we've been taking to transform our costs and margin profiles that will have lasting impact into the future. If we take a step back in FY 2023, when both companies first came together, Citrim have focused on integration and harmonization, and so the new company can start on a clean slate. In FY2024, our first full financial year since merger, we quantified the benefits and scale of coming together, providing market guidance on two targets, $300 million on synergies and cost savings, and $200 million in procurement savings. These targets reflect the efforts that started from the moment the two companies came together. We looked at our cost items line by line, removing what we didn't need and leveraging our combined scale for economic benefits. These changes have fundamentally reduced our cost levels and will continue to have a lasting impact moving forward. We are today in year three and we are pleased to share that we have exceeded those targets and the proof is in the numbers. Gross margins has turned from negative 2.9% at FY2023 to 7.4% in FY2025, alongside an improved mix of higher margin series build projects. G&A expenses as a percentage of revenue has also declined from 5% in FY2023 to 3% in FY2025. And as mentioned earlier, the cost of debt has also significantly declined from 5.7% to 3.4%. And we are not done yet. Initiatives implemented late last year have not seen its benefits fully baked into our financial numbers yet, and we also continue to drive greater cost discipline and internal efficiencies by embedding digitalization, AI, and machine learning meaningfully into the way we work across our global business. We believe this will greatly improve visibility, control, risk management, and operational efficiencies that will reflect in our margins and financial performance in the time to come. As I've alluded earlier, gross margin is an indication of our operational performance, and we are starting to see the fruits of our labor in FY 2025, and I reported our gross margin of 7.4% is a vast improvement from where we started. but it is a reflection of what Ctrim is capable of. We are just getting started. As we continue to streamline operations and tighten overheads, we see accelerated pathways to further expansion through our ongoing divestments of non-core assets. This is an important lever to really reshape our cost structure to unlock efficiencies that will strengthen our long-term resilience and competitiveness. Since 2023, we started divesting assets on our books that are not really required for our global operations. And these assets are broadly categorized into yards and other assets such as vessels and floating cranes. We've accelerated the pace of these divestments in FY 2025, including MFELs and Karamoon yards. GNL, a PSC vessel, a fleet of tough boats, floating docks, and the Crescent Yard that is expected to complete very soon. The sale of the Amphels Yard and GNL vessels have already been completed, and the rest are expected to complete by first half 2026. These transactions will deliver more than $50 million in annualized cost savings, These assets would have otherwise laid idle on our books. I also expected to unlock more than 230 million in gross gains and over 330 million in cash proceeds, of which 110 million was received in FY 2025. We plan to do more, having identified more than 200 million additional non-core assets to invest by 2028, alongside the scheduled return of Admiralty Yard. Together, with the transactions already announced, we expected the cumulative to generate cost savings over $100 million by FY2028. As our business needs evolve, we will continue to review and evaluate opportunities to drive greater efficiencies. These structural improvements will enable us to reduce overheads and drive operating efficiencies, which will in turn bring us closer to our target margins, enhancing our business resilience, and offering stronger fundamentals, which will deliver sustainable long-term returns. With that, let me now pass the time back to Chris.