rottenpapaya
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<dl class="userinfo_extra"><dt>Join Date</dt> <dd>Feb 2010</dd><dt>Posts</dt> <dd>835</dd></dl>
[h=2]Temasek group net profit falls 16% to S$11b[/h]
<dl class="userinfo_extra"><dt>Join Date</dt> <dd>Feb 2010</dd><dt>Posts</dt> <dd>835</dd></dl>
[h=2]Temasek group net profit falls 16% to S$11b[/h]
SINGAPORE: Singapore investment firm Temasek Holdings on Thursday said its group net profit in the year ended 31 March fell 16 percent to S$10.7 billion from S$12.7 billion last year.
This was due to lower operating profits from companies in its portfolio.
It was also due to a difficult external environment.
Temasek's year-end portfolio value was a record S$198 billion, up from S$193 billion last year.
From the shareholders' perspective, Total Shareholder Return (TSR) for the year was a modest 1.5 per cent.
In the year ended 31 March, Temasek invested a total of S$22 billion and divested S$15 billion. Net investments for the year amounted to S$7 billion.
During the year, Temasek doubled its exposure to the energy and resources sectors from 3 per cent to 6 per cent, including a S$2 billion investment in FTS International, a US shale energy production service provider. Temasek also invested S$1.3 billion on US fertiliser producer The Mosaic Company.
However, Temasek said its portfolio is now firmly anchored in Asia.
It ended the year with an underlying portfolio exposure of 72 per cent in Asia, including 30 per cent in Singapore.
Temasek's exposure in mature economies such as Australia and New Zealand was 14 per cent while North America and Europe accounts for 11 per cent. Latin America and other growth regions such as in Africa, Central Asia and Middle East remained at a steady 3 per cent.
In a statement, Temasek chairman S. Dhanabalan said: "In the 10 years since March 2002, we invested almost S$140 billion, and divested just under S$90 billion as an active investor in Asia.
"In the process, we reshaped our portfolio from one largely focused on Singapore to one riding on the twin transformations of Asia and Singapore, growing it from S$77 billion at end March 2002 to S$198 billion a decade later.
"Investments made since March 2002 delivered over 18% annualised returns to Temasek over the last 10 years, while blue chip investments we held as at end March 2002, such as SingTel and Singapore Airlines, delivered a steady 11% annualised returns to Temasek over the same period.
"Based on a theoretical simulation of key holdings, had we kept our portfolio as at 31 March 2002 unchanged, and not stepped out actively into Asia, it would have grown to a lower S$165 billion in March 2012."
Looking ahead, Temasek expects the investment environment to remain challenging amid heightened volatility in the global economy.
Temasek adds that as an active investor, it remains positive on Asia's potential.
"Asia's long-term growth potential remains healthy, though there will be structural and policy risks along the way, especially in the medium term," said Mr S. Dhanabalan. "In the near term, Europe and the US present significant risks, as well as potential opportunities."
In the statement, Temasek's CEO Ms Ho Ching said: "Urbanisation and middle income population growth continue to underpin the long term transformation of Asia and other growth economies. Sectors such as energy, resources and consumer good and services are proxies to the demographic drivers of growth, while technology in the media, computing and biotech may provide new break-through opportunities."
Chia Song Hwee, Temasek Holding's head of Strategy, said: "We continue to be positive about the long-term growth prospect of China... However, from time to time, to meet our investment objectives, we will be re-balancing our portfolio."
- CNA/wm/ir
.................................................. ..
This was due to lower operating profits from companies in its portfolio.
It was also due to a difficult external environment.
Temasek's year-end portfolio value was a record S$198 billion, up from S$193 billion last year.
From the shareholders' perspective, Total Shareholder Return (TSR) for the year was a modest 1.5 per cent.
In the year ended 31 March, Temasek invested a total of S$22 billion and divested S$15 billion. Net investments for the year amounted to S$7 billion.
During the year, Temasek doubled its exposure to the energy and resources sectors from 3 per cent to 6 per cent, including a S$2 billion investment in FTS International, a US shale energy production service provider. Temasek also invested S$1.3 billion on US fertiliser producer The Mosaic Company.
However, Temasek said its portfolio is now firmly anchored in Asia.
It ended the year with an underlying portfolio exposure of 72 per cent in Asia, including 30 per cent in Singapore.
Temasek's exposure in mature economies such as Australia and New Zealand was 14 per cent while North America and Europe accounts for 11 per cent. Latin America and other growth regions such as in Africa, Central Asia and Middle East remained at a steady 3 per cent.
In a statement, Temasek chairman S. Dhanabalan said: "In the 10 years since March 2002, we invested almost S$140 billion, and divested just under S$90 billion as an active investor in Asia.
"In the process, we reshaped our portfolio from one largely focused on Singapore to one riding on the twin transformations of Asia and Singapore, growing it from S$77 billion at end March 2002 to S$198 billion a decade later.
"Investments made since March 2002 delivered over 18% annualised returns to Temasek over the last 10 years, while blue chip investments we held as at end March 2002, such as SingTel and Singapore Airlines, delivered a steady 11% annualised returns to Temasek over the same period.
"Based on a theoretical simulation of key holdings, had we kept our portfolio as at 31 March 2002 unchanged, and not stepped out actively into Asia, it would have grown to a lower S$165 billion in March 2012."
Looking ahead, Temasek expects the investment environment to remain challenging amid heightened volatility in the global economy.
Temasek adds that as an active investor, it remains positive on Asia's potential.
"Asia's long-term growth potential remains healthy, though there will be structural and policy risks along the way, especially in the medium term," said Mr S. Dhanabalan. "In the near term, Europe and the US present significant risks, as well as potential opportunities."
In the statement, Temasek's CEO Ms Ho Ching said: "Urbanisation and middle income population growth continue to underpin the long term transformation of Asia and other growth economies. Sectors such as energy, resources and consumer good and services are proxies to the demographic drivers of growth, while technology in the media, computing and biotech may provide new break-through opportunities."
Chia Song Hwee, Temasek Holding's head of Strategy, said: "We continue to be positive about the long-term growth prospect of China... However, from time to time, to meet our investment objectives, we will be re-balancing our portfolio."
- CNA/wm/ir
.................................................. ..
