Continue reading this on our app for a better experience

Open in App
Home News Results

Sembcorp Industries says it expects to incur losses for FY2020 in profit guidance

Felicia Tan
Felicia Tan • 2 min read
Sembcorp Industries says it expects to incur losses for FY2020 in profit guidance
The group adds that it expects to maintain positive operating cash flow in 2020.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Sembcorp Industries says it expects to incur losses for the FY2020 in its profit guidance released on Dec 7.

The losses are primarily attributable to the non-cash, non-recurring loss of some $1.12 billion following the completion of the distribution in specie of ordinary shares in the capital of Sembcorp Marine (SembMarine) on Sept 11, 2020.

The loss resulted from the fair value of $1.60 billion being lower than the carrying amount of SembMarine’s $2.72 billion as at June 30, 3030.


SEE:Sembcorp Industries and SP Group to jointly develop environmental sustainability platform

According to Sembcorp, the loss will be adjusted based on the carrying value of SembMarine shares up to Sept 11, 2020.

The group also announced that there will be impairments of some $89 million in its 2HFY2020 financial statements, arising from its periodic assessment of the recoverable amounts based on expected future cash flows of its assets.

The impairment comprises the $21 million impairment for utilities assets on Jurong Island, an $8 million impairment for a dedicated wastewater treatment plant in Nanjing, China, as well as a $60 million impairment of UK Power Reserve assets.

The group adds that it expects to maintain positive operating cash flow in 2020 due to the underlying profitable performance of its Energy and Urban businesses.

Shares in Sembcorp closed 1 cent lower or 0.5% down at $1.85 on Dec 4.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.