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Sembcorp reports 50% rise in 2Q18 earnings to $82 mil; Marine unit still mired in losses

PC Lee
PC Lee8/3/2018 09:55 AM GMT+08  • 2 min read
Sembcorp reports 50% rise in 2Q18 earnings to $82 mil; Marine unit still mired in losses
SINGAPORE (Aug 3): Sembcorp Industries reported 2Q18 earnings of $81.9 million, 46.8% higher compared to a year ago, bringing 1H18 earnings to $158.6 million. Group turnover rose 47% to $3.3 billion.
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SINGAPORE (Aug 3): Sembcorp Industries reported 2Q18 earnings of $81.9 million, 46.8% higher compared to a year ago, bringing 1H18 earnings to $158.6 million. Group turnover rose 47% to $3.3 billion.

Utilities saw net profit nearly double to $85 million from a year ago as India operations delivered $39.4 million profit. Turnover for utilities increased $95 million to $1.7 billion, mainly from China, India and the United Kingdom operations.

“Singapore operations benefitted from higher HSFO prices, India from higher volume and prices. United Kingdom from higher generation and China from contribution of the Changzhi water treatment plant which commenced commercial operation in Sept 2017,” said Sembcorp in its filings.

Urban Development continued to perform well, delivering $35.4 million in 2Q18, more than double compared to last year as commercial and residential land sale was recognised in Chengdu.

Marine remained mired in losses. It reported a loss of $33.7 million even though turnover came in $978.3 million higher, attributable mainly to revenue recognition for the delivery of two jack-up rigs and sale of a semi-submersible rig.

Sembcorp said the Marine business continued to face a challenging environment. While transformation efforts to move up the value chain have resulted in new business opportunities, they require significant time and effort in project co-development with potential customers before orders are secured.

In its outlook, Sembcorp said the overall market environment is expected to remain challenging in 2018. While broader-based global recovery is underway, rising trade and geopolitical challenges could potentially increase volatility and dampen global growth.

Sembcorp has announced an interim dividend of 2.0 cents per share, which will be paid on Aug 31.

As at 9.53am, shares in Sembcorp are up 3 cents at $2.65.

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