Singapore, August 6, 2013 - Sembcorp Industries
(Sembcorp) today reported a net profit of S$342.2 million and turnover
of S$4.8 billion for the first half of 2013 (1H2013), compared to
S$367.4 million and S$5.1 billion respectively in the corresponding
period last year (1H2012). Sembcorp’s main profit contributors continued
to be its Utilities and Marine businesses, which contributed 53% and
39% of Group net profit respectively.
The Utilities business achieved a 4% growth in net profit in 1H2013.
The business’ 1H2013 net profit grew to S$201.3 million from S$193.7
million, mainly attributable to our recently-acquired power assets in
China. The Marine business contributed S$147.7 million in net profit in
1H2013, a decrease of 5% compared to S$155.3 million in 1H2012 primarily
due to lower interest income and lower contribution from associates.
The Urban Development business recorded a net profit of S$10.3 million
compared to S$12.3 million in 1H2012.
For 1H2013, return on equity (annualised) for the Group was 14.6% and
earnings per share amounted to 19.2 cents. Economic value added was a
positive S$275.0 million while cash and cash equivalents stood at S$2.1
billion.
In the second quarter of 2013 (2Q2013), Group net profit was S$165.4
million compared to S$190.7 million in 2Q2012, while turnover was S$2.5
billion compared to S$2.7 billion. The Utilities business recorded net
profit of S$111.9 million for the quarter, while the Marine and Urban
Development businesses posted net profit of S$75.7 million and S$3.6
million respectively.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said,
“In 1H2013, our Utilities business continued to grow, underpinned by
good performance from our overseas operations. We have a strong growth
pipeline and have continued to make strides in strengthening our
operational and technological capabilities. In Singapore and the UK, we
embarked on new energy-from-waste projects, while in the Middle East we
expanded our footprint with a joint venture to develop centralised
utilities facilities in Duqm, Oman. In addition, to strengthen our
capabilities in industrial wastewater treatment, we invested and entered
into a strategic partnership with technology solutions firm, Biowater
Technology. Meanwhile, our Marine business grew its orderbook to a
strong S$14.4 billion, including S$3.5 billion worth of new contracts
secured this year. Sembcorp, underpinned by our healthy pipeline of
projects and orderbook, continues to be well-positioned to deliver
sustainable long-term growth.”
FY2013 Outlook
Utilities
Underpinned by growing contribution from its overseas operations, the
Utilities business is expected to deliver a steady performance in 2013
despite the impact of intensified competition in the Singapore gas and
power market. In the second half of 2013, the initial public offering
(IPO) of the Sembcorp Salalah Power and Water Company is also
anticipated to take place.
Marine
Our Marine business has secured contract orders worth a total of S$3.5
billion (excluding repairs) since the start of the year, growing the
Group’s net orderbook to S$14.4 billion, with completion and deliveries
extending till 2019.
Demand for rigs is expected to remain strong, however, competition
from the Chinese and Korean yards will impact margin. Despite the
challenging shipping market environment, there is continued demand for
ship repairs in niche segments.
The new yard at Tuas is commencing commercial operations in August 2013 and the construction of the Brazil yard is on track.
Urban Development
The Urban Development business is expected to deliver a steady operating performance in 2013.
Group
The Group, underpinned by sound business fundamentals and a healthy
pipeline of projects and orderbook, continues to be well-positioned to
deliver sustainable long-term growth.
Highlights from Sembcorp's 1H2013 Financial Results
• Turnover at S$4.8 billion, down 5%
• Profit from Operations at S$611.1 million, down 2%
• Net Profit at S$342.2 million, down 7%
• EPS at 19.2 cents
• ROE (annualised) at 14.6%
Excluding the fair value loss from the reclassification of Gallant Venture
• Profit from Operations at S$636.2 million, up 2%
• Net Profit flat at S$367.3 million
*Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs' results (net of tax)
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