Sembcorp suffers Q4 loss of $15m on lower energy, marine revenue

Sembcorp Industries sank into the red with a net loss of $15 million for its fourth quarter ended Dec 31, 2019, compared with a net profit of $106 million a year ago, dragged down by lower revenue from its energy and marine segments.

Loss per share stood at 1.34 cents for the quarter, from an earnings per share of 5.42 cents a year ago, said the conglomerate in a regulatory filing on Thursday.

Revenue for the fourth quarter fell 10 per cent to $2.32 billion from $2.56 billion a year ago.

A final cash dividend of three cents per share has been recommended for the full year, up from two cents per share a year ago.

The final cash dividend is subject to shareholders' approval at its annual general meeting on April 22, with books closure on April 29. If approved, the dividend will be paid on May 15.

Together with an interim dividend of two cents per share paid in September last year, the group's total dividend for the year will be five cents per share.

For the full year ended Dec 31, 2019, net profit was down 29 per cent to $247 million, while revenue was down 18 per cent to $9.62 billion.

On outlook, Sembcorp said there are still downside risks to global economic growth expectations with heightened geopolitical tensions and the impact of the coronavirus outbreak on China and the region.

The group's energy and urban business will continue to underpin its performance this year, while the offshore and marine sectors continue to experience sustained downturns.

"The group remains committed to its transformation plan, anchored by strong fundamentals and increasing opportunities to provide sustainable solutions to support the global energy transition,"said Sembcorp.

Shares of Sembcorp closed at $2.01 yesterday, down 0.5 per cent.

  • AT A GLANCE

  • REVENUE: $2.32 billion (-10%)

    NET LOSS: $15 million

    DIVIDEND PER SHARE: 3 cents

THE BUSINESS TIMES

A version of this article appeared in the print edition of The Straits Times on February 22, 2020, with the headline 'Sembcorp suffers Q4 loss of $15m on lower energy, marine revenue'. Print Edition | Subscribe