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.

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