Sembcorp sees Utilities Net Profit up 58%, Transformation Underway

Singapore, Aug 03, 2018

Sembcorp Industries (Sembcorp) delivered a credible first half 2018 (1H2018) result, offsetting a weak performance from its Marine business with improved and stable results from its Utilities and Urban Development businesses respectively. The Group posted a turnover of S$6.1 billion and a corresponding net profit of S$158.6 million in 1H2018, compared to S$4.4 billion and S$172.1 million in 1H2017. The Group’s net profit excluding the Marine business was S$190.5 million, up 30% year-on-year.

BUSINESS UPDATES
- The Utilities business delivered a 58% profit growth in 1H2018, posting a net profit of S$155.3 million.
   - Turnaround to profitability achieved in India. Key markets Singapore and China performing well
   - Momentum in repositioning itself for the global energy transition, growing renewables portfolio with 394 megawatts of
     new capacity secured in 1H2018
   - Driving growth in the merchant energy sector with acquisition of UK Power Reserve
   - Deepening presence in Singapore. Building a major position in the solar market and extending the gas business with
     LNG importation

- The Urban Development business continued to perform well. It delivered a steady net profit of S$45.0 million in 1H2018,
  backed mainly by land sales in Vietnam and China.

- The Marine business continued to face a challenging environment. Transformation efforts to move up the value chain
  have resulted in new business opportunities but they require significant time and effort in project co-development with
  potential customers before orders are secured. The business recorded a loss of S$31.9 million in 1H2018, due to lower
  overall business activities and loss recognised from the sale of a semi-submersible rig.

FINANCIAL SUMMARY

*Restated in accordance with Singapore Financial Reporting Standards (International) (SFRS(I))
**Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs’ results (net of tax)

INTERIM DIVIDEND
The board of directors announces an interim dividend of 2.0 cents per ordinary share, which will be paid on August 31, 2018. 

GROUP OUTLOOK
The market environment is expected to remain challenging in 2018. While a broader-based global recovery is underway, rising trade and geopolitical challenges could potentially increase volatility and dampen global growth. The Group is confident that it has the right strategies and capabilities for the future. 

- End -

For analysts’ and media queries, please contact:

Analysts 
Ling Xin Jin (Ms)
Senior Manager 
Group Strategic Communications & Sustainability
DID: +65 6723 3384
Email: ling.xinjin@sembcorp.com 

Media
Fock Siu Ling (Ms) 
Assistant Vice President
Group Strategic Communications & Sustainability
DID: +65 6723 3011
Email: fock.siuling@sembcorp.com

ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries is a leading utilities, marine and urban development group, operating across multiple markets worldwide.

As an integrated energy player, Sembcorp is poised to benefit from the global energy transition. With a strong track record in developing and developed markets, it provides solutions across the energy and utilities value chain, with a focus on the Gas & Power, Renewables & Environment, and Merchant & Retail sectors. It has a balanced energy portfolio of over 12,000 megawatts, including thermal power plants, renewable wind and solar power assets, as well as biomass and energy-from-waste facilities. In addition, Sembcorp is a world leader in offshore and marine engineering, as well as an established brand name in urban development.

Sembcorp Industries has total assets of over S$22 billion and over 7,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices, as well as the SGX Sustainability Leaders Index and the Dow Jones Sustainability Asia Pacific Index.

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