SINGAPORE (Feb 21): Sembcorp Industries posted losses of $15 million for 4QFY2019 ended December, a reverse into the red from earnings of $106 million reported for the corresponding quarter in the previous year.
This translates to a loss per share of 1.34 cents, compared to earnings per share of 5.42 cents a year ago.
This brings the group’s FY2019 earnings to $247 million, some 29% lower than FY2018 earnings of $347 million.
Revenue for the quarter fell 10% to $2.3 billion from $2.56 billion last year.
Segmentally, revenue contributions from the group’s energy business fell 16% to $1.3 million on the back of lower provision of energy products and related services in Singapore due to the planned major maintenance shutdown, as well as the absence of contribution from South Africa post-divestment.
The marine business saw a 32% fall in revenue to $624 million due to lower revenue recognition from rigs and floaters projects. This was, however, mitigated by higher repair and higher repair and upgrade revenue.
Cost of sales fell 6% to $2.2 million from $2.3 million in the previous year in tandem with the lower sales for the period except for the impairments.
Correspondingly, gross profit slumped 46% to $123 million from $227 million in 4QFY2018.
Sembcorp’s board has recommended a full-year final cash dividend of three cents per share, up from the previous year’s recommendation of two cents per share.
With an interim dividend of two cents paid out in September 2019, this brings the group’s total dividend for the year to five cents per share.
The dividend, subject to shareholders’ approval at the annual general meeting on April 22, is slated to be paid on May 15.
As at end-December, cash and cash equivalents stood at $1.74 million.
Looking ahead, Sembcorp expects downside risks to global economic growth expectations with heightened geopolitical tensions as well as the impact of the Covid-19 outbreak on China and the region.
“While the offshore and marine sector continues to experience a sustained downturn, the group’s Energy and Urban businesses will continue to underpin group performance in 2020,” says Sembcorp Industries.
As at 10.58am, shares in Sembcorp Industries are trading flat at $2.02.
