Results & Reports
| 2018 | 2017# | |
|---|---|---|
| For the Year (S$ million) | ||
| Turnover | 11,689 | 9,026 |
| Earnings before interest, tax, depreciation and amortisation (EBITDA)1 | 1,279 | 1,523 |
| Profit from operations | 841 | 1,084 |
| – Earnings before interest and tax | 667 | 920 |
| – Share of results: Associates & JVs, net of tax | 174 | 164 |
| Profit before tax | 420 | 611 |
| Net profit | 347 | 383 |
| At Year End (S$ million) | ||
| Property, plant and equipment and investment properties | 11,672 | 11,158 |
| Other non-current assets | 5,325 | 4,095 |
| Net current assets | 748 | 2,159 |
| Non-current liabilities | (9,807) | (9,238) |
| Net assets | 7,938 | 8,174 |
| Share capital and reserves (including perpetual securities) | 6,788 | 6,944 |
| Non-controlling interests | 1,150 | 1,230 |
| Total equity | 7,938 | 8,174 |
| Per Share | ||
| Earnings (cents) | 16.98 | 19.06 |
| Net assets (S$) | 3.80 | 3.88 |
| Net ordinary dividends (including bonus dividends) (cents) | 4.0 | 5.0 |
| Financial Ratios | ||
| Return on equity (%) | 5.1 | 5.8 |
| Return on total assets (%) | 3.6 | 4.4 |
| Interest cover (times) | 2.5 | 2.9 |
| Total debt-to-capitalisation ratio | 0.57 | 0.55 |
| Total debt-to-capitalisation ratio (less cash and cash equivalents) | 0.47 | 0.40 |
Footnote
# In accordance with SFRS(I).
For the financial year 2018, Sembcorp Industries has adopted the Singapore Financial Reporting Standards (International) (SFRS(I)) and International Financial Reporting Standards (IFRS) frameworks, as well as the new accounting standards that are effective on January 1, 2018.
SFRS(I) and IFRS are issued by the Accounting Standards Council and the International Accounting Standards Board respectively. SFRS(I) comprises standards and interpretations that are equivalent to IFRS. All references to SFRS(I) and IFRS are referred to as SFRS(I) unless otherwise specified. In addition, 2017 financial figures presented in accordance with SFRS(I) have been stated for comparison against 2018 financial figures, and are marked 2017# in the tables in this section.
The application of SFRS(I) 15 accounting standard to our 2017 financial figures mainly impacted the Marine business. For the Marine business, this has resulted in differences in the timing of revenue and cost of sales recognition for certain contracts. In 2017, when these contracts were terminated and new contracts were entered into, the revenue and related cost of sales were recognised. However, with SFRS(I) 15, the previously recognised revenue and related cost of sales were reversed, and will now be recognised upon the transfer of legal title to customers.
1 EBITDA excludes major non-cash items such as the effects of fair value adjustments, re-measurements, impairments and write-offs.
| 2018 | 2017# | |
|---|---|---|
| GROUP (S$ million) | ||
| TURNOVER | ||
| Utilities | 6,536 | 5,697 |
| Marine | 4,888 | 3,035 |
| Urban Development | 5 | 8 |
| Other Businesses | 260 | 286 |
| 11,689 | 9,026 | |
| PROFIT FROM OPERATIONS | ||
| Utilities | 820 | 650 |
| Marine | (60) | 350 |
| Urban Development | 94 | 90 |
| Other Businesses | 9 | 21 |
| Corporate | (22) | (27) |
| 841 | 1,084 | |
| NET PROFIT | ||
| Utilities | 312 | 140 |
| Marine | (48) | 157 |
| Urban Development | 86 | 83 |
| Other Businesses | 16 | 27 |
| Corporate | (19) | (24) |
| 347 | 383 | |
| UTILITIES (S$ million) | ||
| TURNOVER1 | ||
| By Geography | ||
| Singapore | 3,830 | 3,062 |
| China | 219 | 152 |
| India | 1,686 | 1,592 |
| Rest of Asia | 217 | 453 |
| Middle East & Africa | 109 | 105 |
| UK & the Americas | 508 | 362 |
| TOTAL | 6,569 | 5,726 |
| By Product Segment | ||
| Energy | 5,777 | 5,005 |
| Water | 452 | 403 |
| On-site Logistics & Solid Waste Management | 340 | 318 |
| TOTAL | 6,569 | 5,726 |
| PROFIT FROM OPERATIONS | ||
| By Geography | ||
| Singapore | 224 | 218 |
| China | 103 | 91 |
| India | 385 | 329 |
| Rest of Asia | 39 | 48 |
| Middle East & Africa | 62 | 61 |
| UK & the Americas | 33 | 34 |
| Corporate | (24) | (13) |
| PFO before exceptional items | 822 | 768 |
| Exceptional items | (2) | (118) |
| TOTAL | 820 | 650 |
| By Product Segment | ||
| Energy | 614 | 561 |
| Water | 141 | 148 |
| On-site Logistics & Solid Waste Management | 91 | 72 |
| Corporate | (24) | (13) |
| PFO before exceptional items | 822 | 768 |
| Exceptional items | (2) | (118) |
| TOTAL | 820 | 650 |
| NET PROFIT | ||
| By Geography | ||
| Singapore | 155 | 163 |
| China | 87 | 78 |
| India | 47 | (58) |
| Rest of Asia | 22 | 47 |
| Middle East & Africa | 56 | 55 |
| UK & the Americas | 14 | 27 |
| Corporate | (60) | (51) |
| Net Profit before exceptional items | 321 | 261 |
| Exceptional items | (9) | (121) |
| TOTAL | 312 | 140 |
| By Product Segment | ||
| Energy | 203 | 132 |
| Water | 102 | 120 |
| On-site Logistics & Solid Waste Management | 76 | 60 |
| Corporate | (60) | (51) |
| Net Profit before exceptional items | 321 | 261 |
| Exceptional items | (9) | (121) |
| TOTAL | 312 | 140 |
| MARINE (S$ million) | ||
| TURNOVER | ||
| Rigs & Floaters | 4,148 | 1,717 |
| Repairs & Upgrades | 476 | 499 |
| Offshore Platforms | 184 | 732 |
| Other Activities | 80 | 87 |
| TOTAL | 4,888 | 3,035 |
Footnote
# In accordance with SFRS(I).
1 Turnover figures are before intercompany elimination.
| Year Ended December 31 | 2018 | 2017# |
|---|---|---|
| (S$ million) | ||
| Turnover (Note28) | 11,689 | 9,026 |
| Cost of sales | (10,769) | (7,791) |
| Gross profit | 920 | 1,235 |
| General and administrative expenses | (408) | (420) |
| Other operating income | 107 | 75 |
| Non-operating income | 50 | 74 |
| Non-operating expenses | (2) | (44) |
| Finance income (Note29) | 87 | 54 |
| Finance costs (Note29) | (508) | (527) |
| Share of results of associates and joint ventures, net of tax | 174 | 164 |
| Profit before tax | 420 | 611 |
| Tax expense (Note30) | (88) | (118) |
| Profit for the year (Note31) | 332 | 493 |
| Profit attributable to: | ||
| Owners of the Company | 347 | 383 |
| Non-controlling interests | (15) | 110 |
| Profit for the year | 332 | 493 |
| Earnings per share (cents): (Note33) |
||
| Basic | 16.98 | 19.06 |
| Diluted | 16.87 | 18.89 |
Footnote
# In accordance with SFRS(I).
The accompanying notes are referenced to the 2018 financial statements and form an integral part of these financial statements.
| As at December 31 | 2018 | 2017# |
|---|---|---|
| (S$ million) | ||
| Non-current assets | ||
| Property, plant and equipment (Note3) | 11,672 | 11,158 |
| Investment properties (Note4) | 110 | 91 |
| Associates and joint ventures (Note6) | 1,741 | 1,765 |
| Other financial assets (Note7) | 262 | 175 |
| Trade and other receivables (Note8) | 2,349 | 1,184 |
| Tax recoverable | 17 | 7 |
| Contract costs (Note15) | * | 128 |
| Assets held for sale (Note11) | - | 100 |
| Intangible assets (Note12) | 779 | 581 |
| Deferred tax assets (Note13) | 67 | 64 |
| 16,997 | 15,253 | |
| Current assets | ||
| Inventories (Note14) | 513 | 524 |
| Trade and other receivables (Note8) | 2,289 | 2,094 |
| Contract assets (Note9) | 1,022 | 661 |
| Tax recoverable | 22 | 21 |
| Contract costs (Note15) | 329 | 2,363 |
| Assets held for sale (Note11) | 129 | - |
| Other financial assets (Note7) | 95 | 142 |
| Cash and cash equivalents (Note16) | 1,925 | 2,687 |
| 6,324 | 8,492 | |
| Total assets | 23,321 | 23,745 |
| Current liabilities | ||
| Trade and other payables (Note17) | 2,968 | 3,340 |
| Contract liabilities (Note18) | 445 | 1,157 |
| Provisions (Note20) | 86 | 92 |
| Other financial liabilities (Note21) | 62 | 13 |
| Current tax payable | 153 | 159 |
| Interest-bearing borrowings (Note23) | 1,862 | 1,572 |
| 5,576 | 6,333 | |
| Net current assets | 748 | 2,159 |
| Non-current liabilities | ||
| Deferred tax liabilities (Note13) | 425 | 428 |
| Other long-term payables (Note17) | 237 | 256 |
| Provisions (Note20) |
163 | 105 |
| Other financial liabilities (Note21) | 43 | 54 |
| Retirement benefit obligations (Note22) | 5 | 4 |
| Interest-bearing borrowings (Note23) | 8,870 | 8,275 |
| Contract liabilities (Note18) | 64 | 116 |
| 9,807 | 9,238 | |
| Total liabilities | 15,383 | 15,571 |
| Net assets | 7,938 | 8,174 |
| Equity attributable to owners of the Company: | ||
| Share capital (Note24) | 566 | 566 |
| Other reserves (Note25) | (248) | (85) |
| Revenue reserve | 5,669 | 5,460 |
| 5,987 | 5,941 | |
| Perpetual securities (Note26) | 801 | 1,003 |
| 6,788 | 6,944 | |
| Non-controlling interests (Note32) | 1,150 | 1,230 |
| Total equity | 7,938 | 8,174 |
Footnote
The accompanying notes are referenced to the 2018 financial statements and form an integral part of these financial statements.
# In accordance with SFRS(I).
* Less than S$1 million.
| Year Ended December 31 | 2018 | 2017# |
|---|---|---|
| (S$ million) | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Profit for the year | 332 | 493 |
| Adjustments for: | ||
| Dividend | * | * |
| Finance income | (87) | (54) |
| Finance costs | 508 | 527 |
| Depreciation and amortisation | 595 | 571 |
| Share of results of associates and joint ventures, net of tax | (174) | (164) |
| Gain on disposal of property, plant and equipment and other financial assets | (8) | (20) |
| (Gain) / Loss on disposal of intangible assets | * | * |
| Gain on disposal of joint venture and associate | (18) | - |
| Gain on disposal of investment held for sale | - | (47) |
| Gain on disposal and liquidation of investments in subsidiaries | (11) | (5) |
| Gain on disposal of business | (15) | - |
| Changes in fair value of financial instruments | (15) | 5 |
| Equity settled share-based compensation expenses | 11 | 17 |
| Allowance made for impairment loss in value of assets and assets written off (net) | 16 | 31 |
| Negative goodwill | * | * |
| Allowance / (Write-back) of doubtful debts and bad debts (net) | 3 | (16) |
| Provision for fines | 25 | 25 |
| Assumption of liabilities on behalf of a joint venture | - | 11 |
| Impairment of goodwill | 1 | 26 |
| Impairment of investment in associates | - | 4 |
| Contract costs written back (net) | - | (20) |
| Inventories (written back) / written down and allowance for stock obsolescence (net) | (1) | 10 |
| Tax expense (Note30) | 88 | 118 |
| Operating profit before working capital changes | 1,250 | 1,512 |
| Changes in working capital: | ||
| Inventories and work-in-progress | (9) | 295 |
| Receivables (Note(c)) | (1,216) | (810) |
| Payables | (215) | (527) |
| Contract costs | 2,160 | 139 |
| Contract assets | (361) | (208) |
| Contract liabilities | (748) | 320 |
| 861 | 721 | |
| Tax paid | (122) | (70) |
| Net cash from operating activities | 739 | 651 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Dividend received | 167 | 266 |
| Interest received | 74 | 41 |
| Proceeds from disposal of interests in subsidiaries, net of cash disposed of |
73 | - |
| Proceeds from divestment of investment / asset held for sale | - | 206 |
| Proceeds from sale of property, plant and equipment | 11 | 18 |
| Proceeds from sale of intangible assets | * | * |
| Proceeds from disposal of other financial assets and business | 315 | 195 |
| Proceeds from disposal of joint ventures / associates | 66 | 53 |
| Loan repayment from related parties | 25 | 76 |
| Loan to related parties | - | * |
| Non-trade balances with related corporations, net of repayment | - | (16) |
| Acquisition of subsidiaries, net of cash acquired | (426) | (3) |
| Acquisition of additional investments in joint ventures and associates | (85) | (15) |
| Acquisition of other financial assets | (310) | (166) |
| Purchase of property, plant and equipment and investment properties (Note(a)) | (1,107) | (736) |
| Purchase of intangible assets (Note(b)) | (20) | (11) |
| Net cash used in investing activities | (1,217) | (92) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Proceeds from share issued to non-controlling interests of subsidiaries | 25 | - |
| Proceeds from share options exercised with issue of treasury shares | * | - |
| Proceeds from share options exercised with issue of treasury shares of a subsidiary | 1 | * |
| Purchase of treasury shares | (17) | (4) |
| Purchase of treasury shares by a subsidiary | (1) | (6) |
| Proceeds from issue of perpetual securities, net of transaction costs | - | 200 |
| Proceeds from borrowings | 3,011 | 3,206 |
| Repayment of borrowings | (2,156) | (2,427) |
| Payment on finance leases | - | (1) |
| Acquisition of non-controlling interests | (292) | (10) |
| Dividends paid to owners of the Company | (71) | (125) |
| Dividends paid to non-controlling interests of subsidiaries | (29) | (37) |
| Receipt in restricted cash held as collateral | 4 | 6 |
| Perpetual securities distribution paid | (245) | (42) |
| Unclaimed dividends | * | * |
| Interest paid | (486) | (484) |
| Net cash (used in) / from financing activities | (256) | 276 |
| Net increase / (decrease) in cash and cash equivalents | (734) | 835 |
| Cash and cash equivalents at beginning of the year | 2,682 | 1,855 |
| Effect of exchange rate changes on balances held in foreign currency | (25) | (8) |
| Cash and cash equivalents at end of the year (Note16) | 1,923 | 2,682 |
Footnote
# In accordance with SFRS(I).
* Less than S$1 million.
a. During the year, the Group acquired property, plant and equipment with an aggregate cost of S$1,146 million (2017:
S$676 million) of which S$nil (2017: S$1 million) relates to non-cash expenditures which have been capitalised during the year and S$4 million (2017: S$21 million) relates to provision for restoration costs as disclosed in Note 20. Included in the Group’s trade and other payables is an amount of S$167 million (2017: S$108 million) relating to accrued capital expenditure.
b. During the year, the Group acquired intangible assets with an aggregate cost of S$20 million (2017: S$13 million) of which S$nil (2017: S$2 million) was acquired by means of finance lease.
c. The increase in receivables included an amount of S$191 million (2017: S$431 million) of service concession receivables from the Myingyan and Sirajganj Unit 4 power projects which was recognised in accordance with SFRS(I) INT 12 accounting guidelines. The receivables will be collected over the period of the concession contracts from the time the power plants commence commercial operations.
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