Sembcorp Industries has announced a weak set of results for FY2020 ended Dec 31, following the divestment of its former subsidiary Sembcorp Marine (Sembmarine).

The conglomerate swung into a net loss of $997 million during the year from earnings of $247 million in FY2019.

Sembcorp says the weak bottom line was mainly due to a non-cash, non-recurring fair value loss of $970 million recorded.

The fair value loss arose from the completion of the distribution in specie of ordinary shares in the capital of Sembmarine in September last year and a net loss of $184 million from the marine business prior to the distribution.

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In addition, the company recorded exceptional items of negative $144 million.

Sembcorp’s revenue also tumbled 19% y-o-y to $5.45 billion from $6.74 billion.

Despite the dismal set of results, the company has proposed a final and total dividend of 4 cents a share for FY2020.

Looking ahead, Sembcorp says uncertainties continue to persist regarding the strength of recovery from the Covid-19 pandemic.

SEE: Sembcorp Industries appoints SATS chief corporate officer as new group chief financial officer

As such, the company foresees that its underlying performance will be impacted by changes in the customer profile in the UK and Singapore.

This also includes the loss of income from divested assets in Panama and Chile.

Nevertheless, Sembcorp says it will continue to transform its portfolio to focus on sustainable solutions that support the global energy transition and sustainable development.

It notes that 200MW of renewable energy capacity is expected to come onstream this year.

As at 9.37am, shares in Sembcorp are trading 5 cents higher or 3.1% up at $1.67.