SINGAPORE (Feb 23): Sembcorp Industries, the energy, water and marine group, reported 4Q earnings more than doubled to $147.5 million from a year ago as its marine business swung back to profitability and its urban development business put in a better performance.
During the quarter, revenue fell 16.3% to $2.03 billion from a year ago due mainly to lower revenue from marine business.
For FY16, earnings came in at $394.9 million, 28.1% lower than a year ago which included exceptional items totalling $369.9 million. The utilities business contributed $348 million in net profit to the group, with China operations delivering record profits. The urban development business recorded a net profit of $33.3 million while the marine business contributed a net profit of $48.3 million compared to a net loss of $176.4 million.
Revenue for FY16 came in 17.2% lower at $7.9 billion compared to $9.5 billion a year ago.
In its outlook, Sembcorp says the oil and gas market environment is expected to remain challenging in 2017. Although prospects for industry have taken a more positive turn, its marine unit expects a more robust recovery make take longer. However, with increasing enquiries for non-drilling solutions, the unit foresees an earlier recovery in demand for fixed platforms, FPSO and FSO conversions and new-builds in the next few years. Rising global demand for gas also augurs well for its broad-based LNG solutions and capabilities.
The board has proposed a final dividend of 4.0 cents per share. Together with an interim dividend of 4.0 cents per share paid in August 2016, this brings total dividend for the year to 8.0 cents per share.
Shares of Sembcorp closed 16 cents higher at $3.36 before the results announcement.
