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Sembcorp Delivers Robust 1H2012 Performance

August 03, 2012

- Group net profit up 10% to S$367.4 million
- Utilities business achieves strong profit growth of 41%

Sembcorp Industries (Sembcorp) delivered a robust performance in the first six months of 2012 (1H2012). Net profit grew 10% to S$367.4 million in 1H2012 from S$335.0 million in 1H2011, while turnover increased 22% to S$5.1 billion from S$4.2 billion. Sembcorp’s main profit contributors continued to be its Utilities and Marine businesses, which contributed 51% and 41% of Group net profit respectively.
The Utilities business performed well and achieved a strong 41% growth in net profit in 1H2012. The business’ 1H2012 net profit grew to S$193.7 million from S$137.4 million, backed by strong growth from its operations in Singapore. The Marine business contributed S$155.3 million in net profit in 1H2012, compared to S$182.7 million in 1H2011. The Urban Development business recorded a 15% increase in net profit to S$12.3 million from S$10.7 million over the same period.

For 1H2012, return on equity (annualised) for the Group was 17.1% and earnings per share amounted to 20.6 cents. Economic value added was a positive S$270.8 million while cash and cash equivalents stood at S$2.1 billion.

In the second quarter of 2012 (2Q2012), Group net profit grew 9% to S$190.7 million from S$175.1 million in 2Q2011, while turnover was up 23% to S$2.7 billion from S$2.2 billion.

Tang Kin Fei, Group President & CEO of Sembcorp Industries said, “In the first half of the year, Sembcorp delivered a robust performance, underpinned by strong profit growth from our Utilities business, which saw its net profit increase by 41%.

“We also continued to position our businesses for sustainable growth with the achievement of significant milestones. We successfully completed the Salalah Independent Water and Power Plant in Oman as well as our industrial wastewater treatment plant in the new growth area of Jurong Island in Singapore. Meanwhile, our Marine business grew its orderbook to a strong S$6.6 billion, including S$3.1 billion worth of new contracts secured this year.”

FY2012 Outlook

Underpinned by strong 1H2012 results, our Utilities business is expected to deliver a better performance in FY2012 compared to last year despite our Singapore cogeneration plant’s planned major maintenance.

Through the execution of our pipeline of projects as well as the active pursuit of new growth opportunities, the business continues to be well-positioned to deliver long-term growth.

Our Marine business has a current net orderbook of S$6.6 billion with completion and deliveries stretching till the second quarter of 2015. This includes S$3.1 billion in contract orders secured since the start of 2012.

Amid the economic uncertainty and volatile global market conditions, the fundamentals for offshore oil and gas activities remain intact.

Urban Development
While the slowdown in the global economy may affect the pace of land sales, our Urban Development business is expected to deliver a steady performance in 2012.

The Group, underpinned by resilient businesses and a healthy pipeline of projects, will continue to make every effort to position our businesses for sustained growth.

Highlights from Sembcorp’s 1H2012 Financial Results

  • Turnover at S$5.1 billion, up 22%
  • Profit from Operations at S$622.3 million, up 9%
  • Net Profit at S$367.4 million, up 10%
  • EPS at 20.6 cents
  • ROE (annualised) at 17.1%
  • Strong 1H2012 performance from Utilities
  • Net profit at S$193.7 million, up 41%

*Profit from Operations = Earnings before Interest and Tax + Share of Associates and JVs’ results (net of tax).

- END -

For media and analysts’ queries please contact:

Ng Lay San (Ms)
Vice President
Group Corporate Relations
DID: +65 6723 3150
Email: [email protected]

Melissa Yee (Ms)
Group Corporate Relations
DID: +65 6723 3326
Email: [email protected]