Sembcorp Underlying FY2019 Net Profit Up 17% to S$395 Million

Singapore, Feb 21, 2020

- Net profit of S$247 million after exceptional items of negative S$148 million 

Sembcorp Industries (Sembcorp) posted a net profit of S$247 million and turnover of S$9.6 billion for full year 2019 (FY2019), compared to S$347 million and S$11.7 billion respectively in FY2018. Excluding exceptional items, underlying Group net profit grew 17% to S$395 million.

The Urban business delivered record profits in 2019, registering a net profit growth of 36% to S$117 million. Underlying profits for the Energy business was up 12% to S$360 million. However, due to exceptional items totalling a negative S$165 million (comprising divestment gains offset mainly by impairments), the Energy business posted a net profit of S$195 million compared to S$312 million the previous year. Amidst challenging market conditions, the Marine business turned in a loss of S$85 million to the Group in 2019.

BUSINESS UPDATES
Unlocking value through systematic capital recycling
The Group achieved total divestment proceeds of S$600 million since the beginning of 2018, exceeding our S$500 million target.

Underlying profit for the Energy business grew 12% to S$360 million, driven by better performance from its overseas operations. Including exceptional items, the Energy business posted a net profit of S$195 million, compared to S$312 million in FY2018. The business continued to reshape its portfolio with a focus on key geographies and on offering a suite of integrated energy solutions to support a renewable future. Since 2016, net profit from the renewables business has increased nearly five-fold to S$80 million.

Exceptional items, totalling a negative S$165 million, comprised impairments of S$245 million, S$86 million of net gains from the divestment of businesses and assets and a net S$6 million mainly for provisions.

The Urban business posted a record net profit of S$117 million, up 36% from S$86 million the year before. This was driven by the recognition of profit from property development with the successful completion and handover of Riverside Grandeur in Nanjing, China.

The Marine business recorded a net loss of S$85 million compared to net loss of S$48 million in FY2018, mainly due to accelerated depreciation for the Tanjong Kling yard and continued low overall business volume, partly offset by profits from the repairs and upgrade business, which saw a rise in profits on improved margins and better product mix.

FINANCIAL SUMMARY

FINAL DIVIDEND
In view of the Group’s improved underlying profits, a final dividend of 3.0 cents per ordinary share is proposed. Together with an interim dividend of 2.0 cents per ordinary share paid in September 2019, this brings the Group’s total dividend for the year to 5.0 cents per ordinary share.

GROUP OUTLOOK
Looking forward in 2020 there continues to be downside risks to global economic growth expectations with heightened geopolitical tensions as well as the impact of the COVID-19 outbreak on China and the region.

While the offshore and marine sector continues to experience a sustained downturn, the Group’s Energy and Urban businesses will continue to underpin Group performance in 2020. The Group remains committed to its transformation plan, anchored by strong fundamentals and increasing opportunities to provide sustainable solutions to support the  global energy transition.

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For media and analysts’ queries, please contact:

Media:
Melody Wong (Ms)
Vice President
Group Strategic Communications & Sustainability
DID: +65 6723 3439
Email: melody.wong@sembcorp.com

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

ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries is a leading energy, 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, we provide solutions across the energy and utilities value chain, with a focus on the Gas & Power, Renewables & Environment, and Merchant & Retail sectors. We have a balanced energy portfolio of over 12,600MW, including thermal power plants, renewable wind and solar power assets and battery storage. 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$23 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 including the FTSE4Good Index, as well as the SGX Sustainability Leaders Index and the Dow Jones Sustainability Asia Pacific Index.

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