Sembcorp Marine shareholders on Wednesday approved the company’s name change to Seatrium, officially kick-starting the rebranding of Singapore’s offshore, marine and energy giant that a couple of months ago acquired Singaporean compatriot Keppel Offshore & Marine in a S$4.5 billion (US3.37 billion) deal.

Seatrium’s order book currently stands at S$23 billion and the contractor is actively bidding for more work on multiple tender prospects across the energy transition, including cleaner oil and gas, as well as offshore renewables opportunities.

“Going forward, the company will focus on increasing its order book and revenue to improve its operating leverage, while concurrently identifying revenue and cost synergies following the completion of the combination. These measures are expected to improve operating margins and generate sustainable returns for shareholders,” said Seatrium.

The contractor noted that the industry outlook for oil and gas, offshore renewables and other green solutions continues to improve amid the ongoing energy transition.

“We continue to see improvement in orders visibility, underpinned by high oil and gas prices, renewed concerns over energy security in the wake of geopolitical tensions, and the accelerated energy transition towards renewables. Oil and gas companies and energy suppliers have also picked up pace in reviewing ongoing new projects and previously deferred activities,” it added.

In response to a shareholder’s question ahead of Wednesday’s AGM, the company said it believes that following the merger, it has the necessary resources to execute and deliver all projects in its growing order book; noting that “typical consequences of failure to deliver include liquidated damages and/or cancellation of the project”.

“To ensure [the] smooth execution and timely completion of all its projects, active measures are undertaken to enhance operational resilience, flexibility and capabilities. Manpower, financial and other resources are strategically deployed in alignment with our operational requirements to ensure timely delivery of all projects in our order book,” said the Singapore contracting giant.

Seatrium, which was selected after more than 1000 new names were considered, is a combination of two words – sea and atrium.

“It is where the best and brightest engineering minds, those who find their calling and passion in the maritime industry, gather in an atrium of endless possibilities,” the company said.

“It is a reflection of our business and our aspiration to be a premier global player providing innovative engineering solutions for the offshore, marine and energy industries.”

The enlarged post-merger company has started implementing integration initiatives. Seatrium said it expects to benefit from greater synergies given its broader geographical footprint – the contractor now has seven yard facilities in Singapore, plus yards in Indonesia, the Philippines, China, Japan, the UK, Norway, the US and Brazil – larger operational scale and enhanced capabilities.

“[These] factors will underpin the operational and financial performance of the group, which is expected to continue to improve going forward. The group expects to provide further guidance on its path to profitability and positive cash flow when it announces its first half 2023 results.”

Seatrium on Thursday was admitted to SGX, Singapore’s Stock Exchange, with company officials including chief executive Chris Ong and chairman Mark Gainsborough striking the gong at 09.00 at the opening of trading.