9M2003 net earnings rise by 85 percent over the same period last year to $231.3 million, exceeding full year 2002 earnings

SembCorp Industries today announced its 3Q2003 results.

SembCorp Industries delivered a strong 3Q2003 PATMI growth of 157 per cent to $75.5 million over 3Q2002, while 9M2003 PATMI rose 85 per cent over the same period last year to $231.3 million, exceeding its full year 2002 earnings.

This performance is largely the result of earnings improvement from Utilities, Environmental Engineering and Logistics, as well as exceptional gains from divestments. 

Deputy Chairman and CEO Wong Kok Siew said: “Our net profit this quarter leaped 157 per cent and our earnings for 9M2003 is now $231.3million.

“Apart from delivering earnings growth this quarter, we are also creating value for our shareholders through the divestment of our non-core assets and have effectively reallocated the capital into profitable Key Businesses.”

Key Businesses now comprise 96 per cent of SembCorp Industries’ total turnover with topline growth shown by Utilities, Marine Engineering and Environmental Engineering.

The main PATMI contributors were Utilities, Logistics and Marine Engineering, while earnings growth was driven by Utilities, Environmental Engineering and Logistics. Utilities’ 9M2003 PATMI grew 70 per cent to $68.7 million, Environmental Engineering’s 9M2003 PATMI was up 23 per cent while Logistics 9M2003 PATMI showed a 22 per cent growth over the same period last year.
 
Highlights

Delivering Performance

-3Q2003 PATMI up 157% to $75.5m
-9M2003 PATMI at $231.3m, a growth of 85% over 9M2002
-EPS at 12.69 cents, a growth of 82%
-Annualised ROE of 17.6%
-Strong performance todate and realised gains from divestments will underpin earnings for 2003

Creating Value For Shareholders

-Divestment gains for 9 months totalling $92.9m
-Effective capital reallocation into profitable Key Businesses

Building Sustainable Growth For the Future

-Solid performance with long-term baseload earnings
-Strong Group order-book (excl. long-term contracts in Utilities & Logistics) at $3.9bn
-Strong balance sheet in place to support growth

Full-year Outlook

Strong performance todate and realised gains from divestments will underpin earnings for 2003. Barring unforeseen circumstances, overall performance for 2003 is expected to be better than 2002

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Kelvin Lee
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Fax: +65 6822 3240
Email: [email protected]
Website: www.sembcorp.com.sg