Gains from utilities unit's IPO boosts Sembcorp Industries' Q3 profit to $254 million

CONGLOMERATE Sembcorp Industries reported that third quarter net profit rose 40.4 per cent to $254.4 million, on the back of a 30.8 per cent increase in revenue to $2.97 billion for the three months ended Sept 30.

One of its jointly owned units - Sembcorp Salalah Power and Water Company - sought a public listing in September, which contributed to a 73 per cent jump in third quarter net profit for its utilities segment.

Sembcorp Industries said on Monday that it has since reduced its shareholding in Salalah from 60 per cent down to 40 per cent.

Its marine division - the second largest by profit - recorded a rise in third quarter net profit of 12 per cent to $78.6 million due to higher operating profit and foreign exchange gain.

Group president and chief executive of Sembcorp Industries Tang Kin Fei said: "We created value for shareholders by successfully developing the Salalah Independent Water and Power Plant in Oman, and selling down our stake in the company through an initial public offering.

"This generated a total gain of $117 million for the (company)."

For the marine segment, Mr Tang said that there is a strong pipeline of projects and an orderbook of $13.5 billion, which will make it well-positioned for sustainable long-term growth.

Earnings per share increased from 10.14 cents a year earlier to 14.15 cents, while net asset value per share rose 32 cents to $2.84 from Dec 31 last year.

Semcorp Industries shares closed three cents up at $5.32.