- Utilities business achieves strong profit growth of 20% Sembcorp Industries (Sembcorp) delivered a robust performance for the
full year 2013 (FY2013). Net profit grew 9% to S$820.4 million from
S$753.3 million in FY2012, while turnover increased 6% to S$10.8 billion
from S$10.2 billion the previous year. The Utilities and Marine
businesses continued to be our main profit contributors, accounting for
51% and 39% of Group net profit respectively. In FY2013 the Utilities business delivered strong profit growth of
20%, with net profit increasing to S$449.9 million from S$374.6 million
in FY2012, underpinned by solid growth from China and gains from the
initial public offering (IPO) of Sembcorp Salalah Water and Power
Company (Sembcorp Salalah) in Oman. The Marine business reported a net
profit of S$336.9 million in FY2013, up 3% from S$326.7 million in
FY2012. Meanwhile, the Urban Development business reported a 22%
increase in net profit to S$50.2 million from S$41.1 million the
previous year. Return on equity for the Group was 17.1% and earnings per share
amounted to 45.7 cents. Economic value added was a positive S$619.5
million while cash and cash equivalents stood at S$2.3 billion. In the fourth quarter of 2013 (4Q2013), Group net profit grew 9% to
S$223.8 million from S$204.7 million in 4Q2012, while turnover increased
6% to S$3.0 billion compared to S$2.8 billion. Tang Kin Fei, Group President & CEO of Sembcorp Industries, said,
“Sembcorp delivered a strong performance in 2013 with all our
businesses delivering profit growth. Demonstrating the success of our
global growth strategy, our Utilities business saw its net profit up 20%
and profit contribution from its overseas operations increasing to over
50%. “During the year, we created value for shareholders by successfully
developing and then selling down our stake in the Salalah Independent
Water and Power Plant through an IPO in Oman. With this, the board is
pleased to propose a total dividend of 17 cents per ordinary share,
including a bonus dividend of 2 cents per ordinary share. “With a strategic presence in key emerging markets, significant
growth in capacity and a strong Marine orderbook of S$12.3 billion,
Sembcorp continues to be well-positioned to deliver sustainable
long-term growth.” 2013 Dividend The Board of Directors is pleased to propose a final tax exempt
one-tier dividend of 17.0 cents per ordinary share comprising an
ordinary dividend of 15.0 cents and a bonus dividend of 2.0 cents. If
approved by shareholders, this will be paid on May 16, 2014. FY2014 Outlook Utilities In 2014, Utilities’ underlying core business is expected to deliver a steady performance compared to 2013. 2014 will see continued growth from our overseas operations.
Strategically positioned in key emerging markets, the business continues
to focus on its significant growth in capacity. Marine The Marine business has a net orderbook of S$12.3 billion with completions and deliveries stretching into 2019. Moving ahead and in anticipation of the tight labour supply
situation, the business will further improve operational efficiency,
productivity and safety management as well as ensure timely delivery of
projects to its customers, although margin remains challenging. Demand
remains strong at the new Sembmarine Integrated Yard @ Tuas.
Construction of its wholly-owned shipyard in Brazil remains on track to
commence initial operations in the second half of 2014. Urban Development The Urban Development business is expected to deliver a better
performance in 2014, underpinned by land sales in its new urban
developments in China and Vietnam. Group
With a strategic presence in key emerging markets, significant growth in
capacity and a strong Marine orderbook, Sembcorp is well-positioned to
deliver sustainable long-term growth. Highlights from Sembcorp’s FY2013 Financial Results • Turnover at S$10.8 billion, up 6%
• Profit from Operations* at S$1.3 billion, up 4%
• Net Profit at S$820.4 million, up 9%
• EPS at 45.7 cents
• ROE at 17.1%
• Proposing a final tax exempt one-tier dividend of 17.0 cents per
ordinary share, comprising an ordinary dividend of 15.0 cents and a
bonus dividend of 2.0 cents *Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs’ results (net of tax).
Last updated : 14 Sep 2019
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