Sembcorp Industries yesterday posted a second-quarter net profit of $81.9 million, up 46.8 per cent from $55.8 million last year, due to much higher contributions from its utilities and urban development businesses.
Turnover for the three months to June 30 rose by 46.6 per cent to $3.34 billion.
Earnings per share stood at 3.94 cents versus 2.57 cents last year, while turnover rose 46.6 per cent to $3.34 billion for the quarter.
An interim dividend of two cents per share has been declared, down from three cents previously.
Net profit from the utilities segment swelled 97.8 per cent to $85 million, as the group's India operations delivered a $39.4 million profit.
Sembcorp's urban development business did very well as earnings more than quadrupled to $35.4 million from $8.55 million last year. These were, however, partially offset by a $33.7 million net loss from the group's marine business, reversing from a profit of $3 million previously.
For the half-year to June 30, the group's net profit fell 7.9 per cent to $158.6 million, mainly due to losses from the group's marine and construction businesses.
AT A GLANCE
REVENUE: $3.34 billion (+46.6%)
NET PROFIT: $81.9 million (+46.8%)
DIVIDEND PER SHARE: 2 cents (-33.3%)
Excluding the group's marine business, net profit would have risen 30 per cent to $190.5 million, Sembcorp noted.
Earnings per share came in at 7.6 cents for the first six months, down from 8.5 cents in the year-ago period. Meanwhile, turnover rose 39 per cent to $6.1 billion.
Utilities continues to be the key contributor to the group's earnings, delivering a 58 per cent profit growth to $155.3 million for the half-year period, with key markets Singapore and China performing well, and turnaround to profitability achieved in India, Sembcorp said.
The urban development business also continued to deliver a steady profit of $45 million, albeit down 2 per cent from last year.
Nonetheless, the group's marine business continued to face a challenging environment.
"Transformation efforts to move up the value chain have resulted in new business opportunities, but they require significant time and effort in project co-development with potential customers before orders are secured," Sembcorp said.
For the six months to June 30, the group's marine business segment recorded a loss of $31.9 million, versus a profit of $25.6 million a year earlier, mainly due to lower overall business activities, and loss recognised from the sale of a semi-submersible rig.
Said Sembcorp group president and chief executive Neil McGregor: "Our focus remains on lifting performance, supporting marine as it moves up the value chain and repositioning Sembcorp Industries during an unprecedented period of technological and market disruption."
Sembcorp shares ended one cent higher at $2.63 yesterday.
Correction note: Due to an editing error, an earlier version of this story said that Sembcorp's marine business posted a $3 million loss for the year-ago quarter. Instead, the group made a $3 million profit. The article above has been revised to reflect this.