Sembcorp Industries earnings drop 75% in Q4

Earnings at conglomerate Sembcorp Industries were dragged down unsurprisingly by losses in its offshore and marine arm.
Earnings at conglomerate Sembcorp Industries were dragged down unsurprisingly by losses in its offshore and marine arm.PHOTO: SEMBCORP MARINE

SINGAPORE - Earnings at conglomerate Sembcorp Industries took a 74.7 per cent nosedive during the fourth quarter, dragged down unsurprisingly by losses in its offshore and marine arm.

Net profit for the three months to Dec 31 last year slumped to S$60.8 million, well down from the S$240.6 million in the same period last year.

Revenue dropped 9.2 per cent to S$2.42 billion, on the back of lower turnover in both its utilities and marine divisions, said the group on Wednesday.

Net profit for the 12 months sank 31.5 per cent to S$548.9 million, while revenue slid 12.4 per cent to S$9.54 billion.

The group's offshore and marine business, Sembcorp Marine, on Monday had announced a net loss of S$327.5 million during the quarter, compared with the net profit of S$105.9 million previously, as it set aside S$607 million for impairment and provisions for rig contracts.

But the utilities business held up well, with net profit surging 261 per cent to S$395.2 million, thanks to divestment gains.

Earnings per share for the quarter came in at 2.86 cents, a steep 78.5 per cent decline from the 13.33 cents previously. Net asset value per share stood at S$3.60 as at Dec 31, up on the S$3.15 as at the same time the year before.

The group proposed a final dividend of six cents per share, bringing the total dividend to 11 cents, down from the 16 cents in 2014.

Group president and chit executive Tang Kin Fei said: "Over the last two decades, we have built up a strong income base in our utilities business. Although the marine business currently faces a challenging period and uncertainties in Brazil, we remain confident in the long-term fundamentals for the offshore and marine industry.

"Today, Sembcorp's diversified portfolio, balanced between different businesses and geographies, gives us strength and resilience as a group."

Sembcorp Industries shares rose two cents or 0.8 per cent to S$2.53 on Wednesday, before the results were announced.

tsjwoo@sph.com.sg