Utilities Net Profit Doubles; Sembcorp 9M2018 Net Profit at S$240.9 Million

Singapore, Nov 02, 2018

Sembcorp Industries (Sembcorp) posted a turnover of S$9.1 billion and a corresponding net profit of S$240.9 million in 9M2018, compared to S$6.6 billion and S$265.3 million in 9M20171. Excluding the Marine business, the Group delivered a profit growth of 62%, with net profit at S$290.8 million compared to S$179.3 million in 9M2017. In the period, a 96% net profit growth in the Utilities business and stable Urban Development earnings mitigated Marine’s weak performance. 

BUSINESS UPDATES
o The Utilities business delivered a 96% profit growth in 9M2018, posting a net profit of S$246.3 million.

  - Earnings growth: The business delivered improved performance underpinned by India’s turnaround to profitability.
  - Strengthening position in key markets: In Singapore, a long-term renewable energy deal was secured with Facebook. In India, SGPL secured a 15-year power purchase agreement and SGIL commenced operations of the 250MW SECI 1 wind power project. In UK, construction of a 120MW battery storage is underway.
  - Project pipeline completion: In Myanmar, the Sembcorp Myingyan Independent Power Plant commenced full commercial operations. In Bangladesh, the Sirajganj Unit 4 power project achieved first phase open-cycle operations.
  - Unlocking value through capital recycling: The divestment of Sembcorp Tay Paper, medical waste treatment business and Sembcorp Siza Water was completed.

o The Urban Development business continued to perform well. It delivered a steady net profit of S$53.1 million in 9M2018, backed mainly by land sales in Vietnam and China.

o The Marine business continued to face a tough operating environment. The business recorded a loss of S$49.9 million in 9M2018, due to low overall business activities and loss recognised from the sale of West Rigel.

FINANCIAL SUMMARY

GROUP OUTLOOK
The market environment is expected to remain challenging for the rest of the year. While a broader-based global recovery is underway, downside risks to global growth have risen amidst rising trade and geopolitical challenges. The Group remains confident that it has the right strategies and capabilities for the future.

9M2017 financials restated in accordance with Singapore Financial Reporting Standards (International) (SFRS(I))

 - 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
Lim Seng Jin (Mr)
Vice President
Group Strategic Communications & Sustainability
DID: +65 6723 3434
Email: lim.sengjin@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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