Seatrium shares fall sharply after latest results. What disappointed investors?

Seatrium shares plummet

Seatrium’s share price fell sharply on August 2 after the company released its first half of 2024 (1H24) results. The shares are down more than 10% from a closing price of S$1.68 on August 1, hitting an intraday low of S$1.50. This would reverse the stock’s rebound from earlier this week, after the company issued positive guidance for a positive net profit in the first half of 2024. Let’s find out what could be some of the reasons behind the share price decline.

Seatrium 1H24 Earnings Summary

Seatrium reported a net profit of S$36 million in H1 2024, an improvement from a loss of S$264 million incurred in H1 2023. Without a one-time commission of S$79 million in the MH Wirth settlement, Seatrium’s underlying profit for the first half of 2024 would have been S$115 million. Source: Seatrium Seatrium’s revenue grew 39% year-on-year to S$4.0 billion in the first half of 2024. This…