News

- Net profit before exceptional items up 69% at S$252 million

Sembcorp Industries (Sembcorp) posted a Group net profit of S$46 million for the first half of 2021 (1H2021) compared to a net loss of S$42 million in 1H2020. Turnover was S$3.3 billion, up 26% from S$2.6 billion in 1H2020. Group net profit before exceptional items grew 69% to S$252 million, mainly due to higher contribution from the Conventional Energy segment. In 1H2021, exceptional items totalling a negative S$206 million were recognised, due to an impairment of S$212 million made for the 49%-owned Chongqing Songzao coal-fired power plant in China.

In 1H2021, the Conventional Energy segment delivered a net profit of S$185 million before exceptional items compared to S$127 million in 1H2020. Higher contribution from the Conventional Energy segment was attributable to better performance in Singapore and India driven by higher energy demand and margins compared to 1H2020. The Renewables segment recorded a net profit of S$24 million in 1H2021 compared to S$33 million in 1H2020 due to lower wind resource for its wind energy assets in India. In the period, net profit before exceptional items from the Integrated Urban Solutions segment was S$63 million compared to S$64 million in 1H2020.

Despite the impact of the COVID-19 pandemic, the company’s delivery of essential products and services to the community has continued without disruption to date. In 1H2021, an additional 105MW of renewable energy projects was secured in Singapore and Vietnam, and 78MW of renewable energy capacity installed.

FINANCIAL SUMMARY

INTERIM DIVIDEND
The board of directors announces an interim dividend of 2.0 cents per ordinary share, which will be paid on August 24, 2021.

GROUP OUTLOOK
Significant challenges remain for economies around the world. Uncertainties continue to persist with regard to the COVID-19 pandemic with the potential resurgence of infections globally.

Underlying performance of the Group will also be negatively impacted by changes in customer profile in the United Kingdom and Singapore, as well as loss of income from divested assets in Panama and Chile. There are potential downside risks in the Conventional Energy segment across markets due to higher market volatility as well as higher fuel costs. In addition, there will be planned maintenance shutdowns in Singapore, Myanmar and India in 2H2021.

The Group is continuing to transform its portfolio to focus on sustainable solutions that support the global energy transition and sustainable development. In 1H2021, 78MW of renewable energy capacity was installed. Approximately 87MW of renewable energy capacity is expected to come onstream by end 2021.

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For analysts’ and media queries, please contact:

Analysts: 
Ling Xin Jin (Ms)
Assistant Vice President
Group Strategic Communications & Sustainability
DID: +65 6723 3384
Email: [email protected]

Media:
Melody Wong (Ms)
Vice President
Group Strategic Communications & Sustainability
DID: +65 6723 3439
Email: [email protected]

ABOUT SEMBCORP INDUSTRIES
Sembcorp Industries (Sembcorp) is a leading energy and urban solutions provider, driven by its purpose to do good and play its part in building a sustainable future.

Headquartered in Singapore, Sembcorp leverages its sector expertise and global track record to deliver innovative solutions that support the energy transition and sustainable development. By focusing on growing its renewables and integrated urban solutions businesses, it aims to transform its portfolio towards a greener future and be a leading provider of sustainable solutions.

Sembcorp has a balanced energy portfolio of over 12,800MW, with more than 3,300MW of renewable energy capacity comprising solar, wind and energy storage globally. The company also has a proven track record of transforming raw land into sustainable urban developments, with a project portfolio spanning over 12,000 hectares across Asia.

Sembcorp is listed on the main board of the Singapore Exchange. It is a component stock of the Straits Times Index and sustainability indices including the FTSE4Good Index and the iEdge SG ESG indices. For more information, please visit www.sembcorp.com.