News

– Group net profit grows 11% to S$176.7 million, underpinned by strong growth from Utilities

Sembcorp Industries (Sembcorp) delivered a strong performance in the first quarter of 2012 (1Q2012). Net profit attributable to shareholders of the Company (net profit) for 1Q2012 grew 11% from S$159.9 million in 1Q2011 to S$176.7 million, while turnover was up 21% from S$2.0 billion in the previous year to S$2.4 billion. Sembcorp’s main profit contributors, the Utilities and Marine businesses, accounted for 54% and 38% of Group net profit respectively. The Utilities business delivered strong profit growth with net profit up 61% to S$99.0 million in the quarter, driven mainly by solid performance from operations in Singapore. Marine’s 1Q2012 net profit contribution to the Group was S$68.7 million compared to S$91.8 million in 1Q2011.

Return on equity (annualised) for the Group was 15.8% and earnings per share amounted to 9.9 cents for the quarter. Economic value added was a positive S$117.1 million while cash and cash equivalents stood at S$2.8 billion.

Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, “Sembcorp delivered a strong performance this quarter, with our Utilities business recording a 61% growth in net profit. Our acquisition of wind power assets in China will, upon completion, also serve to accelerate our growth in the renewable energy sector. At the same time, our Marine business secured S$3.0 billion worth of contracts this year, bringing its total orderbook to S$7.4 billion. Underpinned by resilient businesses, a healthy orderbook as well as a strong pipeline of projects, Sembcorp is well-positioned for sustainable growth.”

FY2012 Outlook

Utilities
Taking into consideration our Singapore cogeneration plant’s planned major maintenance, our Utilities business is expected to deliver a steady performance in 2012.

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.

Marine
Our Marine business has a current net orderbook of S$7.4 billion with completion and deliveries stretching till second quarter of 2015. This includes S$3.0 billion in contract orders secured since the start of 2012.

The fundamentals driving the offshore and marine activities remain strong. However, competition remains keen for all segments of the business.

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.

Group
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 1Q2012 Financial Results

• Turnover at S$2.4 billion, up 21%
• Profit from Operations at S$286.1 million, up 4%
• Net Profit at S$176.7 million, up 11%
• EPS at 9.9 cents
• ROE (annualised) at 15.8%
• Strong 1Q2012 performance from Utilities

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

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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)
Manager
Group Corporate Relations
DID: +65 6723 3326
Email: [email protected]