5E2.SI Stock Today: February 27 — Dividend Doubled, S$100m Buyback Lift
Seatrium share price is in focus today after the yard owner doubled FY2025 profit, lifted its final dividend to S$0.03, and kept a S$100 million buyback. Seatrium (5E2.SI) last traded at S$2.28, up 3.17% today, with a 52-week range of S$1.62 to S$2.50. Momentum has firmed as margins improved and order visibility stretches into the next decade across Petrobras FPSOs and TenneT HVDC projects. Investors in Singapore are weighing stronger cash returns against execution and valuation. Technical readings are near overbought, but rising volume and improving guidance keep buyers engaged.
Price Action and Valuation Today
Seatrium share price rose 3.17% to S$2.28, trading between S$2.26 and S$2.32 after opening at S$2.30. Turnover hit 46.21 million shares, far above the 9.68 million average, indicating strong interest. RSI at 66.9 and CCI at 170 flag near-term froth, while price sits above the Bollinger upper band at S$2.25, a classic momentum signal.
At S$2.28, Seatrium trades at 28.5 times EPS of S$0.08 and about 1.19 times book. Free cash flow yield is 13.8%, offering support if execution holds. The announced Seatrium dividend of S$0.03 implies a 1.32% yield, with a prudent 19% payout ratio. That mix balances growth spending with tangible shareholder returns.
Key supports sit near the 50-day average at S$2.14 and the 200-day at S$2.19, with resistance at the S$2.50 year-high. ADX at 20 suggests a developing trend. ATR of S$0.05 points to roughly 2% daily swings. Seatrium share price may consolidate above S$2.20 if momentum cools without a catalyst near-term.
Earnings and Capital Returns
Full-year profit doubled to S$324 million on stronger revenue and better margins, while H2 profit rose 48.3% year on year. Management cited resilient oil and gas and offshore-wind demand supporting the upturn. See coverage from Yahoo Finance and The Business Times for detail on Seatrium earnings drivers. Operating leverage improved across key yards.
The board declared a S$0.03 final dividend, doubling last year’s payout. At today’s price, that is a 1.32% yield. The S$100 million Seatrium share buyback remains in place, equal to about 1.3% of market value or roughly 44 million shares at current levels. This supports the Seatrium share price during dips.
Liquidity looks adequate with a 1.07 current ratio and 1.92x net debt to EBITDA. Interest cover at 3.28x is improving. Free cash flow yield near 14% provides scope to fund the Seatrium dividend and buyback. Watch receivables days at 225, which can swing working capital and short-term cash generation materially.
Order Book, Projects, and What to Watch
Management points to Petrobras FPSO awards and TenneT HVDC converter projects, giving order-book visibility through 2033. This supports capacity utilisation and steadier margins. The backdrop of resilient O&G and selective offshore-wind work continues to anchor sentiment around project flow, a key reason the Seatrium share price has tracked higher this month.
Large FPSOs carry schedule and cost risks, while HVDC packages require tight coordination with grid operators. Margin gains reflect better mix and discipline, but cost pass-through and supply tightness can bite. Asset turnover at 0.61 and DSO at 225 days show capital is busy, reinforcing why Seatrium earnings can be lumpy.
We watch delivery milestones on Petrobras FPSOs, HVDC contract progress, and the pace of buybacks. The next earnings update is slated for 24 Jul 2026. Any beat on margins or stronger cash conversion could keep the Seatrium share price near highs, while execution slips may pull it back toward moving averages.
Final Thoughts
Seatrium’s investment case in Singapore is strengthening. Profit doubled, the final dividend rose to S$0.03, and a S$100 million buyback provides steady demand for shares. At S$2.28, investors pay 28.5 times earnings for a yard with improving margins, long-dated Petrobras FPSO and TenneT HVDC work, and visible activity into the next decade.
What matters now is delivery. We want to see on-time project execution, stable gross margins, and better cash conversion given the high receivables days. Technically, momentum is firm but near overbought, so entries may be better on pullbacks toward the 50- or 200-day averages. If execution holds, Seatrium share price could stay supported by cash returns and order flow. If milestones slip, valuation can compress quickly.
We also track buyback execution, dividend policy, and any updates to the order book that could shift capacity planning, as these factors often drive multiple expansion or contraction. As always, this is not advice. Do your own research and size positions to risk.
FAQs
Why did the Seatrium share price jump today?
Investors reacted to stronger FY2025 results, a higher S$0.03 final dividend, and the maintained S$100 million buyback. Better margins and long-dated Petrobras FPSO and TenneT HVDC projects improved sentiment. Technical momentum and above-average volume also added support to the move, helping the price finish higher on the day.
What is Seatrium’s new dividend and yield?
The board declared a S$0.03 final dividend. At today’s S$2.28 price, that equals a 1.32% yield. The payout ratio remains conservative near 19%, leaving room for reinvestment and buybacks if cash conversion stays healthy. Management’s stance signals confidence while keeping balance sheet flexibility for ongoing projects.
How significant is the Seatrium share buyback?
The S$100 million authorisation equals about 1.3% of market cap, or roughly 44 million shares at current levels. While modest, executed steadily it can smooth volatility, support per-share metrics, and signal confidence, especially during periods of elevated project working capital that can weigh on short-term sentiment.
What should investors watch next for Seatrium?
Focus on delivery milestones for Petrobras FPSOs and TenneT HVDC packages, gross margin trend, and cash conversion given receivables days. The next earnings update on 24 Jul 2026 will help confirm whether the margin recovery and order flow underpin guidance, supporting valuation and the share price trend.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.