Sembcorp Industries expects higher H1 profit with high electricity prices

Sembcorp Industries' financial results are expected to be materially higher for the first half of this year compared with a year earlier, on the back of continued high electricity prices in Singapore and India, it said in a bourse filing yesterday.

The group added that it is in the process of finalising the unaudited consolidated financial results for the first half of this year, and further details will be disclosed when the results are announced on Aug 5.

Sembcorp swung to a net profit of $46 million for the first half of last year from a net loss of $42 million in the first half of 2020. Before exceptional items, earnings swelled 69 per cent to $252 million, mainly owing to higher energy demand and margins.

Also yesterday, Sembcorp said in a separate filing that contrary to a report that Myanmar's central bank has ordered a halt on repayment of foreign loans, its subsidiary in the country has not received such a directive.

The subsidiary has also received prompt payment from its energy customer and is continuing to operate its Myanmar power plant, Sembcorp said.

As at June 30, the net book value of the project was US$97 million (S$135 million). US$209 million of the project's loan is outstanding, backed by a corporate guarantee issued by the company's wholly owned subsidiary, Sembcorp Utilities.

Sembcorp's shares closed up 12 cents, or 4.1 per cent, at $3.05 yesterday.

THE BUSINESS TIMES

• Additional information from The Straits Times