Sembcorp net profit grows (Singapore)
- Business & Finance
Sembcorp Industries (Sembcorp) delivered healthy profit growth in the first nine months of 2013 (9M2013).
Net profit grew 9% to S$596.7 million from S$548.6 million in 9M2012 while turnover increased 6% to S$7.8 billion from S$7.4 billion. Sembcorp’s main profit contributors continued to be its Utilities and Marine businesses, which contributed 59% and 35% of Group net profit respectively.
The Utilities business achieved 27% growth in net profit in 9M2013 with net profit growing to S$373.7 million from S$293.5 million in 9M2012 mainly due to gains from the initial public offering (IPO) of Sembcorp Salalah Power and Water Company, which were offset by an impairment made for its operations on Teesside in the UK. Excluding these exceptional items, the business achieved a 4% growth in net profit. The Marine business reported a net profit of S$226.3 million in 9M2013 compared to S$225.4 million in 9M2012. Meanwhile, the Urban Development business recorded a net profit of S$12.6 million compared to S$19.3 million in 9M2012.
For 9M2013, return on equity (annualised) for the Group was 16.6% and earnings per share amounted to 33.3 cents. Economic value added was a positive S$383.9 million while cash and cash equivalents stood at S$2.3 billion.
In 3Q2013, Group net profit grew 40% to S$254.4 million from S$181.2 million in 3Q2012, while turnover increased 31% to S$3.0 billion compared to S$2.3 billion. The Utilities business achieved a net profit of S$172.4 million, increasing 73% from S$99.8 million in 3Q2012, while the Marine and Urban Development businesses posted net profit of S$78.6 million and S$2.3 million respectively.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “Sembcorp delivered healthy profit growth in the first nine months of the year.
“We created value for shareholders by successfully developing the Salalah Independent Water and Power Plant in Oman, and selling down our stake in the company through an IPO. This generated a total gain of S$117 million for the Group. Our Marine business also achieved a significant milestone with its new integrated yard at Tuas commencing operations in August. With our strategic presence in key emerging markets, strong pipeline of projects and a robust Marine orderbook of S$13.5 billion, Sembcorp is well-positioned to deliver sustainable long-term growth.”
Press Release, February 25, 2014