Sembcorp Records Net Profit of S$548.6 Million in 9M2012

Nov 09, 2012

- Utilities business delivers strong profit growth of 36%

Sembcorp Industries (Sembcorp) reported a net profit of S$548.6 million in the first nine months of 2012 (9M2012). Group net profit in 9M2011 was S$557.4 million. In 9M2012, turnover increased 8% to S$7.4 billion from S$6.8 billion in 9M2011. Sembcorp's main profit contributors continued to be its Utilities and Marine businesses, which contributed 52% and 40% of Group net profit respectively.

In 9M2012, the Utilities business delivered strong profit growth with net profit increasing 36%. The businesses' 9M2012 net profit grew to S$293.5 million from S$216.2 million, underpinned by robust growth from its Singapore operations. The Marine business contributed S$225.4 million in net profit in 9M2012 compared to S$317.9 million in 9M2011 mainly due to lower margin from new design rigs and resumption of margin recognition on completion and delivery of the Songa Eclipse semi-submersible rig in 9M2011. The Urban Development business recorded an 8% increase in net profit to S$19.3 million from S$17.9 million over the same period.

For 9M2012, return on equity (annualised) for the Group was 17.0% and earnings per share amounted to 30.7 cents. Economic value added was a positive S$404.1 million while cash and cash equivalents stood at S$1.9 billion.

In the third quarter of 2012 (3Q2012), Group net profit was S$181.2 million compared to S$222.4 million in 3Q2011, while turnover was S$2.3 billion compared to S$2.6 billion.

Tang Kin Fei, Group President & CEO of Sembcorp Industries said, "Backed by strong growth from our Singapore operations and contribution from the newly-completed Salalah Independent Water and Power Plant in Oman, our Utilities business delivered a strong profit growth of 36%. In addition, we achieved a significant milestone in our strategy to grow our renewable energy capabilities with the completion of our acquisition of wind power assets in China. Meanwhile, our Marine business continued to secure significant new orders that have brought its total orderbook to a record S$12.1 billion. Underpinned by sound business fundamentals and a healthy pipeline of projects and orderbook. Sembcorp is well-positioned to continue to deliver shareholder value and long-term growth".

FY2012 Outlook

Utilities
Our Utilities business is expected to deliver a better performance in FY2012 compared to last year.

With the execution of our pipeline of projects as well as the active pursuit of new growth opportunities, the business continues to be well-positioned to deliver long-term growth.

Marine
Our Marine business secured contract orders worth a total of S$9.1 billion since the start of the year, growing its net orderbook to a record high of S$12.1 billion, with completion and deliveries extending till 2019.

Overall, enquiries continue to be healthy although competition remains keen and affects margin.

Urban Development
While the slowdown in the global economy may affect the pace of land sales, our Urban Development business is expected to deliver a steady performance in 2012.

Group
The Group, underpinned by resilient businesses and a healthy pipeline of projects, will continue to make every effort to position our businesses for sustained growth.

Highlights from Sembcorp’s 9M2012 Financial Results

  • Turnover at S$7.4 billion, up 8%
  • Profit from Operations at S$932.3 million, up 1%
  • Net Profit at S$548.6 million, down 2%
  • EPS at 30.7 cents
  • ROE (annualised) at 17.0%
  • Continued strong performance from Utilities, net profit up 36%

*Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs' result (net of tax)

- END -

For media and analysts' queries please contact:

Melissa Yee (Ms)
Manager
Group Corporate Relations
DID: +65 6723 3326
Email: melissa.yee@sembcorp.com

Aleve Co (Ms)
Senior Manager
Group Corporate Relations
DID: +65 6723 3178
Email: aleve.co@sembcorp.com

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