Sembcorp Industries reports 4.5% rise in Q1 earnings

SINGAPORE: Sembcorp Industries has booked a 4.5 per cent increase in first quarter earnings, compared to a year ago. Net profit came in at S$184.8 million.

The increase is largely due to higher contributions from its utilities and marine businesses, as well as stronger growth in its urban development business.

Sembcorp said net profit from the utilities business was S$91.6 million, while net profit for the marine segment was S$74.3 million -- both of which were up three per cent compared to the previous year.

Its urban development business also did better, with a net profit of S$19.5 million - up 192 per cent from the previous year. The increase in profits was attributed to strong contributions from its Nanjing Eco Hi-tech Island project in China.

Revenue, meanwhile, rose by 12 per cent to S$2.6 billion.

Looking ahead, Sembcorp said it expects steady performance from its utilities business this year. However, it warns that margins in the marine business could come under pressure due to intense competition.
Its marine business has a net order book of S$12.9 billion as of May 2, with completion and deliveries stretching into 2019.

- CNA/ac

Highlights from Sembcorp’s 1Q2014 Financial Results

 Turnover at S$2.6 billion, up 12%

 Profit from Operations at S$300.9 million, down 4%

 Net Profit at S$184.8 million, up 5%

 EPS at 10.3 cents

 ROE (annualised) at 13.5%

*Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs’ results (net of tax).