MENU

Revenue Dips 5% at Sembcorp

SembcorpSembcorp Industries Limited (SGX: U96) said first-half revenues came in at $4.8b compared to S$5.1b last year. This was a decrease of 5%. The net profit for was $342m compared to $367m last time – a fall of 6.8%.

Sembcorp’s main profit contributors were its Utilities and Marine businesses, which accounted for 53% and 39% of net profit respectively. The Utilities business achieved a 4% increase in net profit in the first half. The business’ net profit grew from S$194m to S$201m, mainly due to the recently-acquired power assets in China.

The Marine business contributed S$148m in net profit, a decrease of 5%. This was due to lower interest income and lower contribution from associates. The Urban Development business recorded a net profit of S$10m compared to S$12m last time.

For the first half, diluted earnings per share amounted to 19.02 cents, a drop of 6.9%. On an annualised basis, it translates to a PE ratio of 13. Using last year’s EPS of 42.17 cents, the PE ratio is 12.05.

No interim dividend will be paid out.

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.

He added: “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.

He went on to say: “Our Marine business grew its order book 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 order book, continues to be well-positioned to deliver sustainable long-term growth.

In the second half of 2013, an initial public offering (IPO) of the Sembcorp Salalah Power and Water Company is anticipated to take place. The shares closed at $5.08.

Click here now  for your   FREE   subscription to   Take Stock  Singapore, The Motley Fool’s free investing newsletter. Written by   David Kuo ,   Take Stock Singapore   tells you exactly what’s happening in today’s markets, and shows how you can GROW your wealth in the years ahead.  

Like us on Facebook   to keep up-to-date with our latest news and articles. The Motley Fool’s purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.  Motley Fool Singapore contributor Sudhan P doesn’t own shares in any companies mentioned.