Fujairah 1 Completes Expansion, Making It One of the Largest Reverse Osmosis Desalination Plants in the Middle East

Innovative solutions incorporated for greater energy efficiency and competitive edge
 
The Abu Dhabi Water & Electricity Authority (ADWEA) and Sembcorp Industries (Sembcorp) are pleased to announce the successful completion and commencement of operations of an approximately US$200 million expansion to the Fujairah 1 Independent Water and Power Plant (IWPP) in the UAE. The expansion has increased the plant’s total seawater desalination capacity by 30% to 130 million imperial gallons per day (MIGD). With more than half of the plant’s desalinated water produced using reverse osmosis technology, the Fujairah 1 IWPP is now one of the largest reverse osmosis desalination facilities in the Middle East.

The 30 MIGD water output from the expansion will be sold to the Abu Dhabi Water & Electricity Company (ADWEC) under a 20-year water purchase agreement. This will help to meet the increasing water demand in the UAE, and also provide additional income for the plant. The expansion has the ability to use the plant’s uncontracted surplus power to produce the additional water at a highly competitive cost. It has also been configured for greater environmental efficiency and energy savings.

The Fujairah 1 IWPP is owned and operated by Emirates Sembcorp Water & Power Company, a joint venture that is 60% owned by ADWEA and the Abu Dhabi National Energy Company (TAQA), and 40% by Sembcorp. The Fujairah 1 IWPP holds a strong track record of high plant reliability and performance. It has consistently achieved higher plant availability than contracted, since Sembcorp’s acquisition of a stake in the plant in 2006.

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Sembcorp Signs Agreement to Develop the Largest Gas-Fired Independent Power Plant in Myanmar

Sembcorp Industries (Sembcorp) is pleased to announce that its wholly-owned subsidiary, Sembcorp Utilities, has today signed a memorandum of agreement with Myanmar’s Department of Electric Power Planning (DEPP), under the Ministry of Electric Power of Myanmar (MOEP), to invest in and develop a 225-megawatt gas-fired power plant in central Myanmar.

The agreement was signed by Tan Cheng Guan, Executive Vice President & Head of Group Business Development & Commercial of Sembcorp Industries, and U Khin Maung Win, Director General of DEPP, in the presence of senior government officials of Myanmar. The signing of the memorandum of agreement followed Sembcorp’s receiving the notice of award to develop and operate the power plant in April this year.

Located in the Myingyan district of the Mandalay division, the US$300 million power plant is set to be the largest gas-fired independent power plant in Myanmar. Utilising the most efficient technologies, the plant will be able to maximise power output while minimising emissions. When completed, the new facility will help to ease the country’s severe power deficit.

The build-operate-transfer project was awarded after an international bidding process called by Myanma Electric Power Enterprise (MEPE), a division under MOEP, and advised by International Finance Corporation of the World Bank Group. Sembcorp will have an 80% stake in this project, while its partner MMID Utilities will hold the remaining 20%. Expected to be completed in 2018, the project will supply power to MEPE under a 22-year power purchase agreement (PPA), with MOEP guaranteeing MEPE’s obligations under the PPA.

Mr Tan said, “Sembcorp is pleased to be embarking on this project, which is our first investment in Myanmar. This new facility will provide a reliable source of power which is integral to the country’s economic development. At the same time, it gives us a foothold to potentially develop other businesses in the country, such as water and urban development. We look forward to working closely with MOEP on this project.”

A project company, Sembcorp Myingyan Power Company, has been incorporated in Myanmar to undertake the development of this project. The total project investment of approximately US$300 million is expected to be funded through a mix of limited recourse project financing and equity. Financial close of the project is expected in the first half of 2016.

This signing of the agreement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2015.

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Contract Termination: MPM vs Sembcorp Marine?

Back to Sembcorp Marine's History.  

Does anyone doubt that Sembcorp Marine didn't learn much from this bloody painful lesson and their future termination clauses are not drafted with extreme caution to avoid another repeated case?


CW8888: 1995 to 2006 . That is more than 10 yrs and 3.3 times the contract value

SembCorp to pay Allseas vessel compensation

04/01/2006

(Asia-Pacific) - SembCorp Industries has agreed to pay $424.8 million to Swiss group Allseas to settle more than a 10-year old dispute over the conversion of a vessel into a pipelay vessel.

Allseas had commissioned SembCorp's subsidiary Sembawang Corp Ltd. to convert bulk carrier Solitaire into a pipe lay vessel in 1993.

But it terminated the $142.34 million contract two years later, alleging that SembCorp had failed to complete the work on time.

Both parties then took each other to court and the case has been under arbitration in London since 1995.

Sembcorp Establishes Presence in Bangladeh with New Power Project

- Approximately US$390 million power plant in northwestern Bangladesh to have a capacity of 426 megawatts

Sembcorp Industries (Sembcorp) is pleased to announce that it will be developing a 426-megawatt power plant in the Sirajganj district of Bangladesh under a public-private partnership, establishing the Group’s first foothold in this fast growing emerging market. This build-own-operate project was awarded to Sembcorp’s wholly-owned subsidiary, Sembcorp Utilities, by the Government of Bangladesh.

At a total project cost of approximately US$390 million, the combined cycle power plant will be fuelled primarily by natural gas, with high speed diesel as backup fuel. Expected to be completed in 2018, the plant will supply power to the grid under a 22.5-year power purchase agreement with the Bangladesh Power Development Board. Sembcorp will own a 71% stake in the project while North-West Power Generation Company, a subsidiary power generation company of the Bangladesh Power Development Board, will hold the remaining 29%. A joint venture company, Sembcorp Sirajganj Power Company, will be incorporated in Bangladesh to undertake the project.

Tang Kin Fei, Group President & CEO of Sembcorp, said, “We are pleased to secure this project as it provides us with a platform to grow our power business in Bangladesh. With Sembcorp’s track record in developing greenfield projects in emerging markets, we are confident of delivering this project successfully and look forward to working closely with our partner, North-West Power Generation Company. Bangladesh offers strong growth potential and we see the opportunity for us to further grow our utilities and other businesses in the country.”

Bangladesh is among the fastest growing economies in the world with a growing power market. The country’s real gross domestic product is forecast to grow more than 6% annually over the next 15 years, supported by steady growth in private consumption . More power plants are needed to cater to the increasing power needs from economic expansion, as present generation capacity is unable to meet the prevailing load demand of the country. The government also plans to add about 10 gigawatts of capacity over the next decade. With this growing energy landscape in Bangladesh, the country presents immense opportunities for Sembcorp.

“This is the first public-private partnership project with a foreign investor in the power sector in Bangladesh, and we are happy to be partnering Sembcorp in this landmark project. Sembcorp brings with it proven capabilities in developing, owning and operating energy facilities globally. We believe that together we can help to meet the growing demand of electricity in Bangladesh,” said A.M. Khurshedul Alam, Managing Director of North-West Power Generation Company.

Financial information
 
The total project investment of approximately US$390 million (approximately S$547 million) is expected to be funded through a mix of limited recourse project financing and equity. Lenders for this project will include multilateral agencies and commercial banks. Financial close of the project is expected in 2016. Sembcorp’s equity investment will amount to approximately US$68 million (approximately S$95 million) and will be financed by internal funds and borrowings.


This project is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2015.

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SEMBCORP DIVESTS SEMBSITA PACIFIC AT AN EXPECTED S$350 MILLION* GAIN

SINGAPORE, September 21, 2015 – Sembcorp Industries (the Group) announces that its wholly-owned subsidiary, Sembcorp Environment, has signed an agreement to divest its 40% stake in SembSita Pacific Pte Ltd (SembSita) to 60% joint venture partner, Suez Environnement Asia (Suez), for a sale consideration of A$485 million. SembSita is an investment holding entity for an integrated waste management business in Australia.

This divestment will result in an expected net gain of approximately S$350 million* for the Group for the financial year ending December 31, 2015.



 CW8888: $0.15 dividend for 2015 should be there?


Commenting on the divestment, Sembcorp Industries Group President & CEO Tang Kin Fei said, “Since we first invested in SembSita in 2000 with Suez, the joint venture has grown significantly and become one of the leading integrated waste management players in Australia. Proceeds from its sale will provide us with additional resources to invest in businesses and markets with high growth potential, in line with our focus on the energy and water sectors.”

The divestment is subject to Foreign Investment Board Review approval in Australia, and is expected to be completed by the fourth quarter of 2015.

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Sembcorp's First Coal-Fired Power Plant in India Commences Full Commercial Operation

Sembcorp Industries (Sembcorp) is pleased to announce that its power project in India, Thermal Powertech Corporation India (TPCIL), has successfully commenced full commercial operation with the completion of its second 660-megawatt unit. The approximately US$1.5 billion coal-fired power plant investment, which has a total capacity of 1,320 megawatts, has been operating steadily since April 2015 after the completion of its first 660-megawatt unit.

The plant, located in the coastal town of Krishnapatnam, Nellore in Andhra Pradesh, is already supplying 500 megawatts to the Andhra Pradesh and Telangana Power Distribution Companies under a 25-year power purchase agreement. The company intends to enter into new power purchase agreements in the near future.

Tang Kin Fei, Group President & CEO of Sembcorp, said, “The successful completion of our first coal-fired power plant investment in India is a significant milestone for Sembcorp. It demonstrates our strong capabilities in developing and executing large-scale greenfield projects. We now look forward to the completion of our second coal-fired power plant in Andhra Pradesh, which is expected in 2016. When fully operational, our two thermal power plants will generate a total of 2,640 megawatts of gross capacity. This will help to meet the increasing power demand in India and particularly the southern states.”

Sembcorp owns a 67.4% stake in TPCIL through its wholly-owned subsidiary, Sembcorp Utilities, while Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects, owns the remaining 32.6%. Sembcorp is developing its second thermal power project in India: a 1,320-megawatt coal-fired power plant that is targeted to complete in 2016 and located adjacent to TPCIL. Sembcorp owns 49% in this second power project. Sembcorp also owns 64.06% in Sembcorp Green Infra, a renewable energy company in India with more than 700 megawatts of assets in operation and under development. With these three investments, Sembcorp has over 3,300 megawatts of power capacity in India.

The completion of TPCIL is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2015.

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Sembcorp 1Q2015 Net Profit at S$142.2 Million

1Q2015 Highlights

• Group net profit at S$142.2 million amid challenging market conditions
• Utilities’ operations overseas continued to perform well
• Commenced operation for the first of two units of the 1,320-megawatt TPCIL power plant in India

Sembcorp Industries (Sembcorp) posted a net profit of S$142.2 million and a turnover of S$2.3 billion for the first quarter of 2015 (1Q2015) compared to S$184.8 million and S$2.6 billion in 1Q2014 respectively.

The Utilities and Marine businesses continued to be the main profit contributors of the Group, accounting for 97% of Group net profit in 1Q2015. In 1Q2015, the Utilities business contributed S$74.5 million in net profit to the Group compared to S$91.6 million in 1Q2014. Performance of the Utilities business was impacted by continued intense competition in the Singapore power market. Its operations overseas continued to perform well. During the quarter, the first of two units of the 1,320-megawatt TPCIL power plant in India commenced operation. Meanwhile, the Marine business contributed a net profit of S$64.7 million compared to S$74.3 million in 1Q2014 mainly due to lower rig building and repair earnings. The

Urban Development business recorded a net profit of S$1.1 million in the quarter compared to S$19.5 million in 1Q2014.

Return on equity (annualised) for the Group was 9.7% and earnings per share amounted to 7.8 cents. Cash and cash equivalents stood at S$1.6 billion.

Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “Amidst the challenging environment for our Singapore energy operations and Marine business, we continue to focus on project execution, as well as on enhancing operational excellence and efficiency, to manage our costs and maximise earnings.

Underpinned by sound business fundamentals and a healthy pipeline of projects, Sembcorp remains committed to delivering long-term value and growth.”

FY2015 Outlook
Utilities

2015 is expected to be challenging for the Singapore energy business with continued intense competition in the power market as well as low oil prices. The overseas business is expected to continue to deliver a steady performance. During the quarter, the first unit of TPCIL power plant in India commenced operation, and the plant will be in full operation by the end of 2015.

Marine

The ongoing cutback in global exploration and production expenditure has resulted in the scarcity of new orders for the industry this year. Competition for new projects remains intense. The Marine business expects to face a challenging year ahead.

Meanwhile, Brazil’s oil and gas industry continues to be mired in uncertainty. The Marine business continues to engage with customers to find the best way forward for the drillship projects and is exploring all options including slowing down the construction.

The Marine business’ net orderbook to-date stands at S$10.6 billion with deliveries stretching into 2019.

Urban Development

In 2015, the Urban Development business is expected to deliver a performance comparable to 2014.

Group

Despite the challenges of a low oil price environment and a mixed global economic outlook for 2015, the Group, underpinned by sound business fundamentals and a healthy pipeline of projects, remains committed to delivering long-term value and growth.

The Group remains focused on project execution, as well as on enhancing operational excellence and efficiency, to manage costs and maximise earnings.

Summary of Sembcorp’s 1Q2015 Financial Results

• Turnover at S$2.3 billion, down 11%
• Profit from Operations at S$253.7 million, down 16%
• Net Profit at S$142.2 million, down 23%
• EPS at 7.8 cents
• ROE (annualised) at 9.7%

Subsequent Events

• On April 16, 2015, the Group’s wholly-owned UK subsidiary, Sembcorp Holdings Limited, has completed the sale of its 100% stake in Sembcorp Bournemouth Water Investment (SBWI) to the Pennon group PLC (Pennon) for an enterprise value of £191.5 million (approximately S$393 million), with cash proceeds from the sale of £104.5 million (approximately S$214 million).

• On April 24, 2015, the Group’s wholly-owned subsidiary, Sembcorp Utilities, has received the Notice of Award to develop and operate a 225-megawatt gas-fired power plant in central Myanmar by Myanma Electric Power Enterprise (MEPE), a division under the Ministry of Electric Power of Myanmar (MOEP). The total project investment of approximately US$300 million (approximately S$418 million) is expected to be funded through a mix of limited recourse project financing and equity. Financial close of the project is expected in the second half of 2015.

• On April 30, 2015, the Group’s wholly-owned subsidiary, Sembcorp Properties, through its wholly-owned subsidiary, Riverside Quay, has acquired a 5.66-hectare mixed-use site through a public land auction in the Sino-Singapore Nanjing Eco Hi-tech Island (SNEI) in Jiangsu province. Sembcorp Properties will build and operate the industrial office, which integrates technology and innovative R&D, engineering and commercial initiatives for the water industry.

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Sembcorp clinches power-purchase deal for gas-fired power plant in Myanmar

24 Apr5:09 PM

SEMBCORP Industries has made its foray into Myanmar's power market.

On Friday, its wholly owned subsidiary, Sembcorp Utilities, received the notice of award to develop and operate a 225-megawatt gas-fired power plant in central Myanmar by the Myanmar Electric Power Enterprise (MEPE), a division under the Ministry of Electric Power of Myanmar.

The US$300 million power plant, located in the Myingyan district of Mandalay division, is set to be the largest gas-fired independent power plant in Myanmar.

The plant is expected to be completed in 2017 and will supply power to MEPE under a 22-year power-purchase agreement. Sembcorp will have at least an 80 per cent stake in the project.

Sembcorp expands China wind farm business

SINGAPORE: Sembcorp Industries said on Wednesday (Apr 15) it will build a 150-megawatt wind farm in the Hebei province, further expanding its renewable energy business in China.

Construction of the wind farm in Laoshibeihe will start this year, with completion expected by the second half of 2017. The wind farm will cost about around S$300 million and Sembcorp’s share of the equity investment will amount to around S$45 million.

Separately, another wind farm in Jiedijianhe with a 48-megawatt power capacity has commenced operation and is supplying power to the Hebei South grid.

Sembcorp's green facilities include a biomass station and an energy-from-waste facility in the UK, energy-from-waste operations in Singapore and wind power assets in China. The Singapore firm also co-owns and operates wind and solar power assets in India.

- CNA/hs

Sembcorp Posts Net Profit of S$801.1 Million in FY2014

FY2014 Results Highlights

• Delivers healthy performance amid challenging market conditions
• Group net profit up 3% excluding significant items
• Proposes final tax exempt one-tier dividend of 11.0 cents per ordinary share, bringing total dividend to 16.0 cents per ordinary share

CW8888: Is 16 cts the new normal dividend payout?

Sembcorp Industries (Sembcorp) delivered a healthy performance for the full year 2014 (FY2014) amid challenging market conditions. FY2014 net profit was S$801.1 million, while turnover stood at S$10.9 billion. The Group’s net profit grew 3% from the previous year excluding significant items recorded in 2013.

These significant items comprised gains from the initial public offering of Sembcorp Salalah Power and Water Company, offset by an impairment made for utilities operations in the UK as well as a fair value loss recorded following the reclassification of Gallant Venture as an available-for-sale financial asset. The Utilities and Marine businesses continued to be the main profit contributors at 51% and 42% of Group net profit respectively.

In 2014, our Utilities business contributed S$408.0 million in net profit to the Group, while our Marine and Urban Development businesses contributed S$340.0 million and S$44.3 million to the Group’s net profit respectively.

Return on equity for the Group was 15.2% and earnings per share amounted to 44.3 cents. Economic value added was a positive S$524.7 million while cash and cash equivalents stood at S$1.7 billion.

In the fourth quarter of 2014 (4Q2014), Group net profit increased 8% to S$240.6 million, while turnover stood at S$2.7 billion.

Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, "Sembcorp delivered a healthy performance in 2014. Going forward, we remain committed to delivering long-term value for our shareholders, and will maintain our focus on operational excellence and on building platforms for growth.

“Strategically positioned in key emerging markets, we continue to expand our energy and water businesses. In February, we accelerated our growth in the renewable energy sector with our acquisition of Green Infra, a leading renewable energy group in India. With investments in both thermal and renewable energy, Sembcorp is well-positioned for growth in the energy sector with a balanced portfolio of energy assets.”

Y2014 Dividend

The Board of Directors is pleased to propose a final tax exempt one-tier dividend of 11.0 cents per ordinary share. Together with an interim dividend of 5.0 cents per ordinary share paid in September 2014, this brings total dividend for the year to 16.0 cents per ordinary share. If approved by shareholders, this will be paid on May 18, 2015.

FY2015 Outlook

Utilities

In Singapore, the business environment is expected to be challenging in 2015 with intense competition in the power market as well as low oil prices. Overseas, our 1,320-megawatt power plant in India will commence operations in phases in 2015. 

The Utilities business remains focused on operational excellence and efficiency, as well as the execution of its significant pipeline of projects and the pursuit of new growth opportunities to deliver long-term growth.

Marine

With the steep decline in oil prices in the second half of 2014, major oil and gas companies have announced reduced capital expenditure and deferred some of their planned projects. The Marine business continues to face tough competition in upcoming tenders in the offshore exploration and production sectors.

For the ship repair sector, demand for the business’ big docks remains strong which would help cushion the impact of weaker demand in the offshore rig building segment.

The business’ performance in 2015 will be supported by its orderbook.

Urban Development

The Urban Development business is expected to deliver a steady operating performance in 2015.

Group

Despite the challenges of a low oil price environment and a mixed global economic outlook for 2015, the Group, underpinned by sound business fundamentals and a healthy pipeline of projects, remains committed to delivering long-term value and growth.

Summary of Sembcorp’s FY2014 Financial Results

• Turnover at S$10.9 billion, up 1%
• Profit from Operations at S$1.3 billion, down 1%
• Net Profit at S$801.1 million, down 2%
• EPS at 44.3 cents
• ROE at 15.2%
• Proposes final tax exempt one-tier dividend of 11.0 cents per ordinary share, bringing total dividend to 16.0 cents per ordinary share

Excluding significant items* in FY2013:

• Net Profit at S$801.1 million, up 3%

*Significant items in FY2013 amounted to S$43.5 million, comprising the gain from IPO of Sembcorp Salalah Power and Water Company, an impairment for Teesside UK operations and a fair value loss for Gallant Venture.

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Sembcorp to Acquire a Renewable Energy Company in India with a Wind and Solar Portfolio

– A major step in Sembcorp’s strategy to grow its renewable energy business and capabilities

– Driving growth with a balanced portfolio of thermal and renewable energy assets

Sembcorp Industries (Sembcorp) today announces that its wholly-owned subsidiary, Sembcorp Utilities, has signed agreements to acquire a 60% stake in Green Infra, a renewable energy company in India with a wind and solar portfolio. This acquisition marks Sembcorp’s entry into India’s attractive renewable energy market, and is a major step in the company’s strategy to grow its renewable energy business.

Sembcorp signed a shareholders agreement and a share purchase agreement with IDFC Private Equity Fund II and IDFC Private Equity Fund III, to invest in a 60% stake in Green Infra for Rs 10.6 billion (approximately S$227 million). The investment will be held through Sembcorp Renewables, a wholly-owned subsidiary of Sembcorp Utilities.

IDFC Private Equity Fund III, which is managed by IDFC Alternatives, will continue to hold the remaining 40% stake in Green Infra. IDFC Alternatives is indirectly wholly-owned by IDFC Limited, which is listed on the Mumbai Stock Exchange and is 16.4% owned by the government of India.

Tang Kin Fei, Sembcorp Group President & CEO, said, “This acquisition will provide Sembcorp with a platform to grow our renewable energy business. Green Infra’s strong capabilities and experienced team will help to accelerate our growth in the renewable energy sector not only in India, but globally. Meanwhile, with investments in both thermal and renewable energy, Sembcorp is well-positioned for growth in the energy sector with a balanced portfolio of energy assets.”

One of the leading renewable energy groups in India, Green Infra adds to Sembcorp a sizable 516-megawatt operating asset portfolio. It also holds assets under development that will bring its total installed power capacity to 700 megawatts by 2015. Comprising 665 megawatts of wind and 35 megawatts of solar assets in operation and under development, and located in six renewable resource-rich states in the southern, western and central regions of India, Green Infra’s portfolio will almost triple Sembcorp’s current renewable energy generation capacity globally to over 1,000 megawatts. The acquisition will also provide Sembcorp with solar power capabilities, and broadens the technology footprint of Sembcorp’s current renewable energy portfolio beyond wind, biomass and energy-from-waste.

The major part of Green Infra’s electricity output is sold under long-term power purchase agreements with India’s state electricity boards, while the remaining output is sold under long-term contracts with commercial customers. In addition, Green Infra has identified a strong pipeline of new projects to underpin its future growth.

The Rs 10.6 billion (approximately S$227 million) acquisition cost will be funded through a mixture of internally generated funds and debt financing. Completion of the transaction is expected by the end of the month.

The acquisition is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2015.

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Highlights from Sembcorp’s 9M2014 Financial Results

Turnover at S$8.2 billion, up 5%
 
Profit from Operations at S$921.3 million, down 7%
 
Net Profit at S$560.5 million, down 6%
 
EPS at 31.0 cents
 
ROE (annualised) at 14.2%
 
Excluding significant items* from the Utilities business in 9M2013:
 
Net Profit at S$560.5 million, up 6%
 
*Significant items in 9M2013 amounted to S$68.6 million, comprising the gain from IPO of Sembcorp Salalah Power and Water Company and an impairment for Teesside UK operations.

Sembcorp opens new power and steam generation plant

SINGAPORE: Sembcorp Industries (Sembcorp) opened its second cogeneration plant, Sembcorp Cogen @ Banyan - a S$635-million facility with the gross capacity to generate 400 megawatts of power and 200 tonnes per hour of process steam - on Friday (Oct 31).

The plant, which commenced commercial operations at the beginning of the month, generates electricity and steam for industrial companies on Jurong Island. It increases Sembcorp's combined gross power generating capacity in Singapore by 50 per cent to 1,215 megawatts, while enhances the flexibility and reliability of the company's power and steam supply.

A NEW TECHNOLOGY AND INNOVATION CENTRE

Sembcorp also launched a new Technology & Innovation Centre on Friday. It comprises laboratories and applied research and development (R&D) facilities for the development and integration of processes as well as running test-beds for emerging technologies.
The centre will also feature an advanced global asset management system, which is currently in development. The system will allow Sembcorp to manage its energy and water plants around the world.

Mr Tang Kin Fei, Group President and CEO of Sembcorp Industries, said: "Sembcorp's new cogeneration plant enhances Sembcorp's capabilities to serve companies across the whole of Jurong Island. At the same time, the Sembcorp Technology & Innovation Centre and our advanced global asset management system will allow us to effectively manage our international energy and water operations from Singapore, and further drive efficiency, optimisation of resources, availability and reliability. "

COLLABORATION WITH EMA

Speaking at the opening ceremony, Second Minister for Trade and Industry S Iswaran announced that Sembcorp will collaborate with the Energy Market Authority (EMA) on two new initiatives to support the long-term development of Singapore's energy sector.
The two initiatives are the Sembcorp-EMA Energy Challenge, a nationwide competition that aims to engage youths and inspire future leaders in the energy sector; and the Sembcorp-EMA Energy Technology Partnership, a S$10-million partnership to promote the development and commercialisation of new technologies that address the nation's energy challenges.
Under the partnership, Sembcorp and EMA will identify areas of focus where greater application of R&D can benefit both Singapore and the industry.

Apart from helping to meet Singapore's energy challenges, this partnership will also help strengthen local R&D capabilities. Further details on the first call for proposals are slated to be released next year.

These developments are not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year, the company said.

- CNA/av

The special purpose joint venture will undertake the S$488 million contract for the Land Transport Authority of Singapore for the construction of Marina South station and tunnels for the Thomson Line.

Singapore, July 25, 2014 – Sembcorp Industries Ltd announces that its wholly-owned subsidiary Sembcorp Design and Construction Pte Ltd has entered into a 50:50 project joint venture agreement with Sinohydro Corporation Ltd (Singapore branch). The special purpose joint venture will undertake the S$488 million contract for the Land Transport Authority of Singapore for the construction of Marina South station and tunnels for the Thomson Line. 

The above transaction is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending December 31, 2014.

Sembcorp: Stake In Thermal Powertech Corporation India Increases From 49% To 65% For S$86.7 Million

Sembcorp Industries' shareholding in Thermal Powertech Corporation India has increased from 49% to 65%. The total investment for the incremental 16% stake amounts to approximately Rs 400 crores, approximately S$83.7 million, financed by a mix of internal funds and borrowings. The investment amount was arrived at by taking into account mainly the book value of the project. With this increase in stake, TPCIL now becomes a subsidiary of Sembcorp. The remaining 35% is owned by Gayatri Energy Ventures, a wholly-owned subsidiary of Gayatri Projects.

Fall in wholesale electricity prices worries gencos Rates have fallen below cost of natural gas feedstock, posing financial risks for players

By ronnie lim

FUELLING UP

PacificLight Power's new 800 MW Jurong Island facility is 100 per cent LNG-fuelled, although it is starting to look at diversifying its feedstock portfolio for supply-security reasons. - FILE PHOTO

Singapore

SINGAPORE generation companies (gencos) are concerned that wholesale electricity prices here have fallen for the first time below the cost of their natural gas feedstock this year.
An industry official has warned that this is an unsustainable situation, as it poses financial risks for market players.

The situation has arisen largely from intense market competition fanned by oversupply from recent new genco plants, but another factor is the rigidity of current gas supply contracts with their "take-or-pay" clauses.

Sembcorp Expands Its Industrial Wastewater Treatment Business in China’s Jiangsu Province

- Signs agreement to acquire and upgrade an existing facility to a high concentration industrial wastewater treatment plant
- Plans in place by the Jiangsu Environment Protection Department to replicate Sembcorp’s model in other industrial parks in Jiangsu 

SINGAPORE, June 3, 2014 – Sembcorp Industries (Sembcorp) strengthens its presence in China’s Jiangsu province with the signing of a joint venture agreement to acquire and upgrade an existing wastewater treatment plant in Lianyungang Lingang Chemical Industrial Park (LCIP).

Under the agreement, Sembcorp’s wholly-owned subsidiary, Sembcorp (China) Holding Co, will hold an 80% stake in the joint venture, while Lianyungang Lingang Industrial Area Administration Committee’s wholly-owned company, Shenghai Wastewater Treatment Plant Co, will hold the remaining stake.

Sembcorp has been selected by the Jiangsu Environment Protection Department to improve industrial wastewater treatment operations at LCIP. The existing facility in the chemical industrial park, which is only able to treat low concentration wastewater, will be upgraded to one that is capable of treating high concentration industrial wastewater directly from source. Sembcorp was selected for this project given its proven capabilities to treat multiple streams of complex industrial wastewater directly from customers to meet discharge standards, benefitting both customers and local governments.

The upgrading is targeted to be completed by end 2015 and the enhanced industrial wastewater treatment plant will have a capacity of 20,000 cubic metres per day. The total project cost of RMB130 million (approximately S$26.1 million) will be funded through a mix of equity and borrowings.

The Jiangsu Environment Protection Department intends to collaborate with Sembcorp to utilise the company’s advanced industrial wastewater treatment solutions to manage industrial wastewater from multi-customers within chemical industrial parks in Jiangsu. The LCIP will be the first of the industrial parks to have its water management capabilities upgraded by Sembcorp under this collaboration. The collaboration is an endorsement of Sembcorp’s strong reputation as a global leader in industrial wastewater treatment, and is in line with a memorandum of understanding for cooperation in strengthening environmental protection signed at the sixth Singapore-Jiangsu Cooperation Council meeting by the Jiangsu Environment Protection Department and International Enterprise (IE) Singapore. 

Alan Yau, CEO of Sembcorp China, said, “This project leverages Sembcorp’s established capabilities and leading position in industrial wastewater treatment globally. We are honoured to be selected by the Jiangsu Environment Protection Department and are pleased to bring our expertise in industrial wastewater treatment to the Lianyungang Lingang Chemical Industrial Park. We also look forward to having this model replicated in other chemical industrial parks in Jiangsu. This will enable us to extend our solutions across the province and further cement our position as a market leader in industrial wastewater treatment in China.”

Currently, Sembcorp’s industrial water and wastewater treatment business serves 11 industrial sites in China, including important petrochemical and chemical sites such as Nanjing Chemical Industrial Park and Zhangjiagang Free Trade Port Zone in Jiangsu province. It was recently named China’s “Leader in Wastewater Treatment for Chemical Industrial Parks” by ChinaWaterNet at its prestigious China Water Industry Annual Awards.

This transaction is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the current financial year.
 

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).

Sembcorp expands industrial wastewater treatment business in Hubei

By Vivien Shiao

                          

 

Sembcorp Industries will be expanding its industrial wastewater treatment business to China's Hubei province, with the development of its first beachhead in Jingmen City.

Sembcorp said it would own a 95 per cent stake in the joint venture to build, own and operate an industrial wastewater treatment plant in the Jingmen

Chemical Industrial Park. Jingmen Xinyuan Investment Company, wholly owned by the Duodao District Government of Jingmen city and a business arm of the JCIP Administration Committee, will hold the remaining 5 per cent.

The total project investment of 98.7 million yuan will be funded through a mix of equity and borrowings.

Sembcorp's 95 per cent share of the equity investment amounts to 37.5 million yuan (S$7.8 million), which will be financed by internal funds.

Making utilities a pillar in Sembcorp

Sembcorp Industries' CEO Tang Kin Fei has played an instrumental role over the past 2 decades. By LEE MEIXIAN


SOME 20 years ago, Sembcorp Industries, a heavyweight in Singapore's utilities sector and a blue-chip conglomerate, didn't actually have a utilities business.

Today, utilities, comprising energy, water, solid waste management and on-site logistics, contributed $450 million in 2013 net profit - more than half the $820 million total net profit reported that year.

Moreover, profit from utilities is expected to double in the next five years, on the back of a strong development pipeline of power and water projects in mostly rapidly developing economies.

One person who was instrumental in adding the utilities pillar to the company's then largely marine operations back in 1995 is Sembcorp's present-day group president and CEO Tang Kin Fei.

The utilities business arose because of a conundrum that Mr Tang found himself grappling with back when he was heading Sempec, a seven-person unit of Sembawang Engineering engaged in onshore plant engineering services.