SINGAPORE (Aug 3): Sembcorp Industries posted earnings of $55.3 million for the 2Q ended June, down 36.1% from $86.5 million a year ago despite achieving higher turnover.
An interim dividend of 3 cents per share has been declared, and will be paid on Aug 31.
Revenue for the quarter was up 23.2% to $2.3 billion compared to $1.8 billion in the previous year, with sales from its utilities segment growing 75% to $1.6 billion due to higher HSFO prices, higher contribution from India, and construction revenue from Myingyan and Sirajganj Unit 4 power projects.
However, higher contribution from utilities was dragged down by lower sales from the marine segment which fell 28% from $655.5 million a year ago due to lower contribution from rig building and offshore platform projects.
While the group notes that its two thermal power plants and renewable energy assets in India are doing well, its second thermal power plant, SGPL, has yet to secure long-term power purchase agreements and is expected to incur losses for the year.
According to Sembcorp, the group is “closely reviewing the situation” in the case of SGPL.
Other income came in 22% lower at $20.1 million from a year ago while share of profit from associates and joint ventures fell 8.9% to $34.7 million led by lower contribution from utilities’ China operations.
“With a deep industry downturn on one hand and market disruptions on the other, we recognise the need to be both prudent and agile. We will be disciplined on cost, cash flow and balance sheet, while at the same time smart about capturing opportunities and reshaping Sembcorp for the future,” says Neil McGregor, group president and CEO of Sembcorp.
Shares in Sembcorp closed 2 cents lower at $3.22 on Thursday.
