SembCorp Industries has been
consistently delivering good returns for our shareholders over the
years. In addition, we are committed to cultivating high standards
of investor relations through maintaining transparent and honest
communications with our shareholders and the financial markets.
Generating returns for our shareholders
To enable our shareholders to benefit from the solid performance
of our business operations, the Board
has proposed an ordinary dividend of 5 cents per share, subject
to approval at the Annual General
Meeting, on April 26, 2005. A special dividend of gross 6.25 cents
per share was paid out in January
2005, following the receipt of dividend from our subsidiary, SembCorp
Logistics. This is set to bring the total dividend to a record high
of 11.25 cents, representing a 61% increase over the year before.
This generates a yield of 6.9%, based on end-2004 closing share
price.
Proposed capital reduction
The Board has also proposed a capital reduction of S$215.0 million
which is aimed at returning surplus capital to shareholders, and
increasing our future Earnings Per Share and Return on Equity. The
proposed capital reduction is subject to shareholders’ approval
in April 2005. It is proposed that the exercise be effected by cancelling
6% of the issued share capital at S$1.95 per share. The price of
S$1.95 is based on a premium of 2.6% over the volume weighted average
trading prices of shares traded on the Singapore Exchange Securities
Trading Limited for the five market days from February 11 to 17,
2005. As shares will be cancelled proportionately, all shareholders
will maintain their proportionate shareholdings in SembCorp Industries.
Share price in 2004
SembCorp Industries’ share price performed well in 2004, closing
the year at S$1.62, up 29% year-on-year from S$1.26 at the end of
2003. It also outperformed the Straits Times Index during the same
period by 12%. Trading of our shares was active in 2004 with more
than 1 billion shares changing hands during the year, on the back
of an average daily volume of approximately 4 million shares. Including
dividends, our shares provided a total shareholder return of 35%
for the year.
Month
Closing
Share
ST
Index
Jan
1.31
1848.36
Feb
1.43
1888.63
Mar
1.54
1858.92
Apr
1.43
1842.03
May
1.45
1788.66
Jun
1.34
1838.00
Jul
1.29
1891.71
Aug
1.31
1918.34
Sep
1.47
1984.74
Oct
1.53
1980.69
Nov
1.45
2027.66
Dec
1.62
2066.14
Month
Volume ('000)
Jan
4,487.74
Feb
4,979.95
Mar
3,851.96
Apr
2,095.67
May
2,271.71
Jun
3,542.71
Jul
3,166.32
Aug
4,120.19
Sep
4,866.96
Oct
6,960.19
Nov
3,952.30
Dec
4,393.96
Our Shareholders Institutional investors increase holding
Institutional investors raised their holdings of our shares substantially
in 2004. Excluding the shares held by our strategic shareholder,
institutional investors held 53% of our remaining shares, compared
to 38% from the year before.
Strong interest from foreign investors
At the end of 2004, approximately 77% of all shares held by institutional
investors were held by foreign
based investors, the majority of whom were from the UK and US. This
reflects both SembCorp Industries’ international orientation,
as well as the attractive investment potential of our shares in
the international financial markets.
Ensuring Transparency in our Investor Relations
At SembCorp Industries, we believe that proactive, timely and quality
communication with investors and financial analysts is integral
to helping the Company achieve a fair valuation of its shares. Our
Investor Relations team is committed to providing meaningful information
to our investors, the financial community and the interested public,
to enable them to make informed investment decisions.
We organise quarterly results announcement briefings and teleconferences
with the media and analysts. In addition, we hold one-on-one meetings
and conference calls with institutional investors to discuss our
corporate strategy and key developments.
In March 2004, we participated in the Credit
Suisse First Boston Asian Investment Conference 2004 in Hong Kong,
where we conducted workshops and one-on-one meetings with existing
shareholders and potential investors from Singapore, Hong Kong,
Europe, US and Canada.
Furthermore, to foster greater understanding of our business operations,
we organised visits for members of the financial community to our
operating facilities. In April 2004, we hosted a group visit to
SembCorp Utilities facilities on Jurong Island for 15 sell-side
financial analysts. A similar visit was held in September for key
institutional investors from Europe.
For the year 2004, approximately 20 analysts extended coverage on
SembCorp Industries, and published regular research reports with
estimates and forecasts on our company’s performance.
To ensure that retail investors and the interested public have good
and regular access to information
about SembCorp Industries, we participated in the SGX-MAS Research
Incentive Scheme, where analysts research reports from two local
stockbrokerages were made available to the investing public. We
also participated in the SGX Retail Investment Fair 2004 in May
which was aimed at educating the retail investing public.
Press releases from the SembCorp Group of companies are promptly
uploaded on our website www.sembcorp.com.sg.
We also arrange for video and audio web-casts of our half-yearly
results announcements to help investors understand our businesses
and corporate developments better. Recognition
We are honoured that our efforts to communicate with the capital
market in a consistent, timely and frank manner have been recognised.
SembCorp Industries’ 2003 Annual Report won the Merit Award
at the Annual Report Awards. The awards were organised by the Institute
of Certified Public Accountants of Singapore, the Investment Management
Association of Singapore, the Securities Investors Association Singapore
(SIAS), the Singapore Institute of Management, the Singapore Institute
of Directors, the Singapore Exchange Limited and the Business Times.
We were also recognised as one of Singapore’s most transparent
companies at the annual SIAS Investors’ Choice Awards 2004.
Calendar of SembCorp
Industries’ Quarterly Results Announcements*
