Sembcorp Posts 1H2013 Net Profit of USD 270 Million (Singapore)

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.”

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Sembcorp, August 6, 2013