SEMBCORP 9M2014 NET PROFIT AT S$560.5 MILLION
Singapore, November 6, 2014 – Sembcorp Industries (Sembcorp) net profit for the first nine
months of 2014 (9M2014) stood at S$560.5 million compared to S$596.7 million in 9M2013, while
turnover was S$8.2 billion, an increase of 5% from the same period last year. In 9M2013, the
Utilities business recorded gains from the initial public offering of Sembcorp Salalah Power and
Water Company in September, which were offset by an impairment made for its UK operations.
Excluding these significant items, Group 9M2014 net profit was 6% up from 9M2013. The Utilities
and Marine businesses continued to be the main profit contributors, accounting for 53% and 42%
of Group net profit respectively.
In 9M2014, the Utilities business delivered a net profit of S$298.6 million compared to S$373.7
million in 9M2013. Meanwhile, the Marine business reported a net profit of S$234.1 million, an
increase of 3% from S$226.3 million, while the Urban Development business reported a 132%
growth in net profit to S$29.3 million from S$12.6 million in 9M2013.
Return on equity (annualised) for the Group was 14.2% and earnings per share amounted to 31.0
cents. Economic value added was a positive S$350.1 million while cash and cash equivalents
stood at S$2.2 billion.
In the third quarter of 2014 (3Q2014), Group net profit was S$196.6 million, while turnover grew
3% to S$3.1 billion.
Tang Kin Fei, Group President & CEO of Sembcorp Industries, said, "In the quarter, we continued
to achieve milestones in positioning Sembcorp for long-term growth. In China, our Utilities
business signed a conditional joint venture agreement for two power plants in Chongqing and in
India, commissioning has commenced for the first of two units of our 1,320-megawatt Thermal
Powertech power plant. Meanwhile, our Marine business continued to secure significant new
contracts, building up its orderbook.”
FY2014 Outlook
Utilities
Competition in the Singapore power market continues to be intense and is expected to affect the
performance of the Utilities business. However, contribution from its overseas business is
expected to grow. In 2014, the Utilities underlying core business is expected to deliver a steady
performance compared to 2013.
Strategically positioned in key emerging markets, the business continues to focus on its
significant growth in capacity.
Marine
The Marine business has a net orderbook of S$12.6 billion with completion and deliveries
stretching into 2019. This includes a total of S$4.2 billion in contracts secured since the start of
2014.
Despite the current low oil price environment, the Marine business believes long-term
fundamentals driving the offshore exploration and production (E&P) market remain stable.
However, reduction in capex spending could impact new orders and keen competition continues
to exert pressure on margins.
The Marine business remains well positioned - having built a broad product offering, a strong
execution track record and state-of-the-art facilities at its Sembmarine Integrated Yard @ Tuas.
The four new dry docks continue to see high utilisation. Meanwhile, its wholly-owned shipyard in
Brazil commenced initial operations in the second half of 2014, with construction completion
scheduled for 2015.
Urban Development
The Urban Development business is expected to deliver a comparable performance in 2014,
underpinned by land sales in its urban developments in China and Vietnam.
Group
With a strategic presence in key emerging markets, significant growth in capacity and a strong
Marine orderbook, Sembcorp is well-positioned to deliver sustainable long-term growth.
Highlights from Sembcorp’s 9M2014 Financial Results
Turnover at S$8.2 billion, up 5%
Profit from Operations at S$921.3 million, down 7%
Net Profit at S$560.5 million, down 6%
EPS at 31.0 cents
ROE (annualised) at 14.2%
Excluding significant items* from the Utilities business in 9M2013:
Net Profit at S$560.5 million, up 6%
*Significant items in 9M2013 amounted to S$68.6 million, comprising the gain from IPO of Sembcorp Salalah Power and Water
Company and an impairment for Teesside UK operations.
http://infopub.sgx.com/FileOpen/SCI_9M2014_Results Press Release.ashx?App=Announcement&FileID=323119
